Mortgage application activity falls during the first week of August
Aug 8 2012 4:13PM
Despite improving housing market factors, a new report shows mortgage application activity was down for the week ending August 3. While higher home prices may make prospective buyers of homes for sale in Los Angeles Country hesitant to purchase, mortgage rates remain near record-low levels and continue to provide high affordability.
The Mortgage Bankers Association's most recent Weekly Mortgage Applications Survey reveals activity fell 1.8 percent from the week before. The Market Composite Index also fell 2 percent on an unadjusted basis while the Refinance Index was down 2 percent. Additionally, the seasonally adjusted Purchase Index decreased 1 percent from the week before.
Current homeowners are still taking advantage of refinancing, as these applications accounted for 81 percent of all activity, matching the refinance share from a week ago.
Despite a slow season for home sales, applications have been up in recent months as more prospective buyers are investing in becoming homeowners. The slight fall in activity will likely be offset in the fall, when the market is generally more busy.