Mortgage application figures move up for fourth consecutive week
Posted on Wednesday, May 1, 2013 at 3:22:42 PM
With national mortgage rate averages continuing to afford consumers the opportunity to lock in residential financing, recent rises in mortgage application activity were observed during the week ending April 26.
The latest Weekly Mortgage Applications Survey released by the Mortgage Bankers Association detailed a seasonally adjusted week-over-week increase in loan application volume of 1.8 percent. The Purchase Index declined 1.4 percent on a seasonally adjusted basis, while the unadjusted index decreased by just 0.5 percent and registered at a level 13 percent above figures recorded during the same week in April 2012.
MBA noted the Refinance Index improved 3 percent from the preceding week's data, although the refinance share of activity held firm and remained unchanged at 75 percent of total applications.
Due to the positive drops recently exhibited in mortgage rates, many American consumers may be experiencing a heightened sense of confidence. The Conference Board's Consumer Confidence Index for April showed a significant month-over-month improvement from March's reading of 61.9 to its current position at 68.1.
Lynn Franco, director of economic indicators at The Conference Board, said individuals may be feeling better because of favorable residential lending conditions, even amid reports of nationwide financial concern associated with the recent sequester, fiscal cliff and payroll tax hike.
"Consumer Confidence improved in April, as consumers' expectations about the short-term economic outlook and their income prospects improved," Franco said.