Weekly Mortgage Applications Soar on Record Low Rates: MBA
The volume of mortgage applications submitted in the week ending June 25 rose a seasonally adjusted 8.8% from a week earlier, according to the Mortgage Bankers Association (MBA). Applications for refinance mortgages soared 12.6% this week after taking a 7.3% plunge the previous week. The jump in refinance interest brings the refinance share of total mortgage applications to 76.8%, from 73.8% last week. "Refinance applications jumped in response [to record-low interest rates], but remain at about half the level seen in the spring of 2009," said MBA vice president of research and economics Michael Fratantoni, in a statement. "Purchase applications declined for the seventh time in the last eight weeks, keeping the purchase index near 13-year lows." The volume of applications submitted for purchase mortgages fell a seasonally adjusted 3.3% this week. The adjustable-rate mortgage (ARM) share of applications fell to 4.7%, from 4.9% a week earlier. Write to Diana Golobay.