According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications skyrocketed last week. The MBA’s Market Composite Index – which measures both refinance and purchase activity – was up 28.5 percent from the week before, with the refinance index posting a 40 percent jump and the purchase index up 16 percent. Joel Kan, MBA’s vice president and deputy chief economist, says the gains were due to falling mortgage rates. “Mortgage rates dropped lower last week following the announcement of increased MBS purchases by the GSEs,” Kan said. “Lower rates … sparked an increase in refinance applications. Purchase applications also jumped last week and were 13 percent ahead of last year’s pace, as lower rates and higher inventory kept potential home buyers active in the market.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
