If you need assistance, please call 317-590-2901

Lower Rates Trigger Jump in Mortgage Applications

Tuesday, January 14, 2014   /   by Carlos J Higareda

Lower Rates Trigger Jump in Mortgage Applications



   

Mortgage applications surged 12 percent last week on lower interest rates, the Mortgage Bankers Association reports. 


The refinance index grew 11 percent last week, according to the MBA’s seasonally adjusted index. 


Applications for home purchases -- viewed as a leading gauge of future home buying -- edged up 12 percent for the week.


Meanwhile, mortgage rates fell last week, with the 30-year fixed-rate mortgage dropping from 4.72 percent to 4.66 percent last week. 


"The drop in rates was large enough to trigger a pickup in refinance volume," says Michael Fratantoni, the association's chief economist. "The increase in purchase volume is more likely reflecting an increase coming out of the holidays, beyond what our seasonal adjustment model anticipated."


Purchase applications are back to last November’s level, and applications are 10 percent below where they were a year ago, Fratantoni says. Mortgage applications to refinance have fallen more than 65 percent from year-ago levels. 


Source: “Mortgage Applications Surge on Lower Rates,” CNBC (Jan. 15, 2014) and “U.S. Mortgage Applications Volume Jumped Last Week,” The Wall Street Journal (Jan. 15, 2014)



eXp Realty
Carlos Higareda
719 Virginia Ave, Suite 101
Indianapolis, IN 46203
317-590-2901
317-881-3700

The source of the Licensed Listings is BLC® listing service. The Licensed Listings are confidential information of BLC® listing service. The BLC® listing information is provided by the Metropolitan Indianapolis Board of REALTORS® from a copyrighted compilation of listings. The compilation of listings and each individual listing are © 2019 Metropolitan Indianapolis Board of REALTORS® All Rights Reserved. The information provided is for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All properties are subject to prior sale or withdrawal. All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.