Mortgage Applications Swing in Purchase Loans Favor

April 2, 2014

Overall mortgage applications dropped again last week, but applications for home purchases, viewed as a leading gauge for future home sales, continue to tick up, the Mortgage Bankers Association reports.

Loan requests for home purchases rose 0.9 percent in the week ending March 28, while applications for refinancing, which have been steadily falling over the past few weeks, fell 2.9 percent, the MBA reports.

Overall, the MBA index, which measures both loan applications for home purchases and refinances, slipped 1.2 percent for the week. Applications have dropped in six of the past seven weeks, mostly attributed to a softening in refinancing demand due to higher interest rates.

The 30-year fixed-rate mortgage held steady during the week at 4.56 percent, unchanged from the previous week, according to the MBA survey, which covers more than 75 percent of the residential mortgage application market.

Source: “U.S. Mortgage Applications Fell Last Week: MBA,” Reuters (April 2, 2014) and “U.S. Mortgage Application Volume Dropped 1.2% Last Week, MBA Says,” Dow Jones Business News (April 2, 2014)

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