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May sees mortgage applications jump considerably

Posted on Wednesday, May 8, 2013 at 12:43:36 PM

Following several consecutive weeks of lowering mortgage rates, an increasing number of consumers have been submitting applications for residential financing. 

The Mortgage Bankers Association's (MBA) latest Weekly Mortgage Applications Survey showed a significant jump in the measure of home loan application volume for the week ending May 3. The organization's Market Composite Index increased 7 percent week-over-week on both seasonally adjusted and unadjusted bases. The Purchase Index exhibited a seasonally adjusted 2 percent improvement, ticking up to the highest level recorded since May 2010. Meanwhile, the unadjusted Purchase Index hiked 3 percent from the preceding week, and registered at a level 12 percent higher than that observed during the same week in April 2012.

In addition, the MBA reported its Refinance Index jumped 8 percent last week, possibly due to increases in both the conventional and government refinance indices.

In another recent report, the Federal Housing Finance Agency announced refinance volumes remained high during February, as mortgage rates hovered near record lows. According to the organization, More than 463,000 loan refinances took place during the second month of 2013, with nearly 98,000 having been finalized through the Home Affordable Refinance Program.

As steady, low rates continue to benefit consumers, many may advantage by researching residential lending options with a trusted financial firm in their surrounding area.