April 21, 2018

Drop in Refi Applications Softens Loan Demand

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Drop in Refi Applications Softens Loan Demand

Mortgage applications slipped in the latest week, despite mortgage rates continuing to hold near yearly lows and keeping borrowing costs down.

Recent Coverage of MBA Reports

Refi Applications Boost Loan Demand

Loan Demand Slips on Drop in Refi Applications

Refis Drive Rise in Mortgage Applications in Latest Week

A mini boom in refinance applications last week, with a 3.8 percent jump in demand, reversed course in the latest week, falling 4 percent, according to the Mortgage Bankers Association’s seasonally adjusted index of application activity for the week ending Aug. 8.

Home purchase applications, viewed as a leading indicator of future home sales, fell 1 percent during the week.

Overall, the index, reflecting 75 percent of the residential mortgage market, showed that mortgage applications – including for refinance and home purchases – dropped 2.7 percent during the week.

Meanwhile, the fixed-rate 30-year mortgage averaged 4.35 percent during the week, holding at its same average the week prior, the MBA reports.

Source: “U.S. Mortgage Applications Fall in Latest Week: MBA,” Reuters (Aug. 13, 2014)