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October 25, 2014

MBA: Mortgage Applications Mostly Flat

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MBA: Mortgage Applications Mostly Flat

Loan demand for mortgages picked up slightly last week as an increase in refinancing applications offset a decline in applications for home purchases, the Mortgage Bankers Association reports. 

MBA’s index showed that mortgage application activity -- which reflects applications for both refinancing and home purchases -- rose 0.3 percent in the week ending Oct. 11. The previous week posted a 1.3 percent gain. 

However, the government shutdown is weighing on the mortgage market, according to the MBA. 

"Purchase applications for government programs dropped by more than 7 percent over the week to their lowest level since December 2007, and the government share of purchase applications dropped to its lowest level in almost three years," says Mike Fratantoni, the MBA's vice president of research and economics.

Applications for home purchases -- a leading gauge for future home sales -- dropped 4.8 percent last week, the MBA reports. Meanwhile, applications for refinancings rose 3.3 percent.

Source: “US mortgage applications near flat as purchase demand falls -MBA,” Reuters (Oct. 16, 2013)

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