Mortgage applications decrease nationwide during end of March
Posted on Wednesday, April 3, 2013 at 3:39:27 PM
Pending mortgage insurance regulations by the Federal Housing Administration may have led fewer consumers to pursue residential lending opportunities during the last week of March.
According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, mortgage application activity fell about 4 percent during the period ending March 29 from the preceding week. It is believed that consumers may have rushed to submit loan requests in hopes of avoiding an annual fee of 0.1 percent on mortgage insurance premiums, which was introduced on April 1 for all FHA-backed loans.
Although overall application activity reportedly exhibited a decline, the organization's seasonally adjusted Purchase Index recorded a weekly gain of 1 percent, while the unadjusted index rose 2 percent from levels seen the week prior.
"Total purchase applications increased last week, due to an almost 7 percent increase in purchase applications for government loans," said Mike Fratantoni, vice president of research and economics for MBA. "This was likely driven by borrowers applying for loans prior to the scheduled increase in FHA premiums that took effect on April 1. On a year over year basis, purchase applications are up about 4 percent."
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