MBA: Mortgage Applications Jump 17% As Rates Fall

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Mortgage application volume increased in the week ending September 4, as lower interest rates spurred demand to its highest level since late May.

The MBA's market composite index, which measures mortgage loan application volume, rose 17 percent on a seasonally adjusted basis. On an unadjusted basis, application volume increased 15.8 percent from the previous week, and 64.5 percent from the same week last year.

Interest rates were down across the board last week, with the average contract interest rate for 30-year fixed-rate mortgages decreasing from 5.15 percent to 5.02 percent, the rate for 15-year fixed-rate mortgages decreasing from 4.57 percent to 4.45 percent and one-year Adjustable Rate Mortgages decreasing from 6.71 percent to 6.69 percent.

Meanwhile, the MBA's refinance index increased 22.5 percent from the prior week, its biggest jump since mid-March. It decreased 3.1 percent the previous week. The seasonally adjusted purchase index also increased 9.5 percent, reaching its highest level since early January.

Refinance shares of mortgage activity also increased, moving up to 59.8 percent of total applications from 56.5 percent the week before, while the ARM share of activity increased to 5.8 percent of applications, up from 5.6 the previous week.

The four week moving average for the seasonally adjusted market index is up 7.0 percent. The same average is up 3.3 percent for the seasonally adjusted purchase index and up 9.7 percent for the seasonally adjusted refinance index.

Mortgage application volume increased in the week ending September 4, as lower interest rates spurred demand to its highest level since late May. The MBA's market composite index, which measures mortgage loan application volume rose 17 percent on a seasonally adjusted basis. On an unadjusted basis, application volume increased 15.8 percent from the previous week, and 64.5 percent from the same week last year. (Market News Provided by RTTNews)