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Mortgage applications near 2-year high

Posted on Wednesday, July 8, 2015 at 9:26:43 PM

Mortgage applications inched closer to a two-year high following a dip in interest rates and continued, though modest, job gains.

The Mortgage Bankers Association's Weekly Mortgage Applications Survey's Market Composite Index rose 4.6 percent on a seasonally adjusted basis from the week prior, according to Housing Wire. The index is a measure of mortgage loan application volume. 

The Market Composite Index is composed of two other indices that indicate home buying behavior. First is the Purchase Index, which rose 7 percent over the week before. The other factor in the Market Composite Index is the Refinance Index, which increased 3 percent. 

Through the week ending on July 3, the 30-year mortgage rate fell 3 basis points from 4.26 percent to 4.23 percent, Reuters reported. Often residential financing applications rise and fall with interest rates, and the latest mortgage application survey from the MBA illustrates this pattern. 

The Federal Reserve has targeted September to raise benchmark interest rates, but modest hiring recently has led some experts to question whether this will happen. For now, though, mortgage rates remain near historic lows as everyone waits for the housing market to kick into a higher gear.