A growing number of people are seeking out mortgage applications, according to data from the Mortgage Bankers Association (MBA) for the week ending Jan. 12.
The Market Composite Index, the MBA’s measure of mortgage loan application volume, increased 10.4% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index was up by 26%.
The seasonally adjusted Purchase Index increased 9% from one week earlier while the unadjusted index shot up by 28% – however, the latter was also 20% lower than the same week one year ago.
The Refinance Index increased 11% from the previous week and was 10% higher than the same week one year ago. But the refinance share of mortgage activity dipped to 37.5% of total applications from 38.3% the previous week.
Among the federal programs, the FHA share of total applications decreased to 14.3% from 14.4% the week prior while the VA share of total applications tumbled to 14.2% from 16.3% and the USDA share of total applications inched up to 0.5% from 0.4%.
Joel Kan, MBA’s vice president and deputy chief economist, observed, “Although purchase activity is lagging year-ago levels, refinance applications have improved from their recent low point and have been showing year-over-year gains, albeit at low levels. If rates continue to ease, MBA is cautiously optimistic that home purchases will pick up in the coming months.”
