Mortgage applications on the rise in recent weeks
Posted on Wednesday, August 7, 2013 at 1:18:33 PM
The latest Mortgage Bankers Association survey has found that mortgage applications have increased marginally over the past few weeks.
The residential financing uptick is closely tied to home sales, and comes in contrast to the decreasing statistics the housing market has seen over the past several months, according to Reuters.
In total, the MBA reported that mortgage applications rose 0.2 percent on a seasonally adjusted basis. Unadjusted, the change was miniscule compared to the previous week, but both the adjusted and unadjusted Purchase Index grew 1 percent on a weekly basis.
Unchanged from the previous week were both refinance levels - still at 63 percent of total applications - and the adjustable-rate mortgage levels, holding steady at 6 percent.
The MBA also reported fluctuations in mortgage rates, with 30-year fixed-rates going up slightly while 15-year versions decreased.
There is also a rising sentiment that the proposed removal of Fannie Mae and Freddie Mac will drive up rates, according to USA Today. Changes are currently being discussed across multiple levels of government, but the belief appears to be that any short-term replacement would have this effect for residential financing.
"You have to assume that almost in any future model being drafted, loans will be more expensive," said MBA CEO David Stevens.