Mortgage Applications for Purchases on the Upswing

April 9, 2014

While overall applications for home mortgages continue to fall, applications for home purchases, viewed as a leading gauge of future home sales, are on the rise, the Mortgage Bankers Association reports.

Applications for home purchases rose 2.7 percent for the week ending April 4, the MBA reported Wednesday. On the other hand, a slip in refinancing activity caused the MBA’s overall mortgage application index, which reflects both purchases and refinance applications, to dip 1.6 percent for the week. Refinancing applications tumbled 4.9 percent last week.

Overall application volume has fallen seven of the past eight weeks, mostly attributed to the fall in refinancing applications from a rise in mortgage rates earlier this year.

Last week, however, mortgage rates mostly held steady. The 30-year fixed-rate mortgage was unchanged at a 4.56 percent average, the MBA reports.

Source: “Mortgage Applications Fell Last Week as Refinance Down: MBA,” Reuters (April 9, 2014) and “U.S. Mortgage Application Volume Fell 1.6% Last Week, MBA Says,” The Wall Street Journal (April 9, 2014)

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