According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications skyrocketed last week. The MBA’s Market Composite Index – which measures both refinance and purchase demand – was up 33.3 percent from one week earlier. Joel Kan, MBA’s vice president and chief economist, says the spike may be due to seasonal volatility. “This time of the year is a particularly volatile time for application volumes, so it can be more helpful to focus on the level rather than the percentage change,” Kan said. “Purchase applications were 2 percent lower, and refinances were 22 percent higher compared to a year ago.” Also in the report, average mortgage rates continue to climb, as economic concerns over inflation and budget deficits persists. Last week, rates were up for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 5/1 ARMs. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
