Mortgage applications and refinancing activity both increase
Dec 7 2011 6:12PM
The Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending December 2 showed mortgage applications increased 12.8 percent on an adjusted basis from the prior week. On an unadjusted basis the Index increased 60.2 percent.
The Refinance Index increased 15.3 percent from the previous week while the adjusted Purchase Index increased 8.3 percent to its highest level since August 5. The unadjusted Purchase Index increased 47.2 percent from numbers reported last week but remains lower than last year by 0.8 percent.
The refinance share of mortgage activity increased to 76percent of total applications from 73.9 percent the previous week. The adjustable-rate mortgage share of activity decreased slightly to 5.7 percent from last week's 5.8 percent.
A spokesperson for MBA said applications increased significantly as mortgage rates dropped to their lowest level in about two months after the Thanksgiving holiday.
"In particular, refinance application increased sharply, with some lenders seeing refinance volume double," said Michael Fratantoni, MBA's vice president of research and economics.
The housing market typically sees a decrease in activity during the winter season, but some potential homeowners may be taking advantage of low home prices and mortgage rates before the new year.