Mortgage application activity was on the rise again, according to data from the Mortgage Bankers Association (MBA) for the week ending Dec. 8.
The MBA’s Market Composite Index was up by 7.4% on a seasonally adjusted basis from one week earlier while the unadjusted index ticked up by 6%. The seasonally adjusted Purchase Index increased 4% from one week earlier, but the unadjusted index dipped by 1% and was also 18% lower than the same week one year ago.
The Refinance Index increased 19% from the previous week and was 27% higher than the same week one year ago. The refinance share of mortgage activity increased to 39.2% of total applications from 34.7%.
Among the federal programs, the FHA share of total applications increased to 16.1% from 15% while the VA share of total applications increased to 14.2% from 12.8% and the USDA share of total applications dipped to 0.4% from 0.5%.
Mike Fratantoni, MBA’s senior vice president and chief economist, observed, “Borrowers who had seen rates near 8% earlier this fall are now seeing some lenders quote rates below 7%. Refinance volume picked up in response to this drop in rates, with a particularly notable increase for FHA and VA refinance applications. Purchase volume was running about 18% below last year’s pace, as prospective homebuyers are still challenged by a lack of inventory, even as rates have decreased.”
;
