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Lowered mortgage rates see increase in applications

Posted on Wednesday, March 27, 2013 at 11:09:04 AM

An increasing number of consumers may be pursing homeownership this month.

Low mortgage rates have afforded additional opportunities for individuals considering purchasing property to access residential financing, and many have been doing so - as mortgage application activity saw a jump last week. 

According to the Mortgage Bakers Association, the total amount of applications submitted during the week ending March 22 increased to 7.7 percent from figures seen the week before on a seasonally adjusted basis. The Refinance Index improved 8 percent week-over-week, though the refinance share of mortgage activity remained largely unchanged at 75 percent of total applications.

On a seasonally adjusted basis, the organization's Purchase Index increased 7 percent last week. On an unadjusted basis, the index rose from 8 percent from the previous week. These positive figures were possibly due to recent drops in mortgage rates.

Last week, Freddie Mac's Primary Mortgage Market Survey saw national averages for fixed-rate mortgages (FRMs) decline considerably for the week ending March 21. Average 30-year FRMs fell to 3.54 percent from the previous week's level of 3.63 percent, while 15-year FRMs averaged 2.72 percent, having declined week-over-week from 2.79 percent. 

Along with the positive weekly changes, substantial year-over-year improvement was observed for FRMs. During the same week in March 2012, 30-year plans averaged 4.08 percent and 15-year products were recorded at 3.30 percent.