Mortgage Application Activity Jumps to Highest Level in Almost One Year on Refi Demand

A large uptick in refinance applications helped drive a widely-used measure of mortgage lending activity upward last week, with the Mortgage Bankers Association reporting that its Market Composite Index of weekly mortgage applications jumped 5.5 percent on a seasonally-adjusted basis for the week ending November 9, 2007. The composite index touched 707.3, its highest since the week ended December 8, 2006, when it touched 721.2. Refinance activity jumped 6.4 percent, driving refinance share of mortgage activity to 50.2 percent of total applications from 49.1 percent the previous week, the MBA said. Purchase applications also rose 4.8 percent in the most current weekly survey, compared to one week earlier, while both government and conventional loan demand saw an increase as well. The MBA’s weekly application survey counts among all borrower applications, including those who are ultimately denied. For more information, visit http://www.mortgagebankers.org.