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Mortgage applications up, more people interested in residential financing

Posted on Wednesday, September 4, 2013 at 12:10:21 PM

The number of people using residential financing has increased over the past week, as more mortgage applications have been filed and the housing market appears to be a driving force behind the U.S. economy. 

The total volume of mortgage applications rose more than 1 percent, according to the recent Weekly Mortgage Applications Survey from the Mortgage Bankers Association. Additionally, the Market Composite Index grew 0.3 percent from the previous week, while the Refinance Index rose 2 percent. 

Refinancing was a major factor of total applications, accounting for as much as 61 percent of all activity, according to the Mortgage Bankers Association. One of the few decreases reported belonged to the adjustable-rate mortgage, which dropped to only 7 percent of total applications.

Perhaps one of the driving factors for the rise in total mortgage applications was the slightly decreasing mortgage rates. More borrowers might be interesting in acquiring residential financing if the prices are affordable.

In addition, a number of people might be concerned about the looming changes by the Federal Reserve, which is currently contributing to the growth of the housing segment with a mortgage-backed bond buying policy, according to USA Today.