According to the Mortgage Bankers Association’s Weekly Applications Survey, loan demand headed higher last week following the Memorial Day holiday, with both refinance and purchase loan activity up from one week earlier. Overall, mortgage application demand increased nearly 11 percent. Mike Fratantoni, MBA’s senior vice president and chief economist, says volatile rates didn’t stop borrowers. “Mortgage rates were volatile last week as news from the Middle East continues to drive markets,” Fratantoni said. “While the average rate was up slightly … there were opportunities where borrowers were seeing somewhat lower rates. Both refinance and purchase applications rebounded coming out of the Memorial Day holiday week, with refinance applications up 15 percent and purchase applications up 7 percent.” Refinance activity is now 20 percent higher than the same week one year ago, while demand for loans to buy homes has increased 4 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
