Mortgage Applications Bounce Back, Up 5.3%

The number of mortgage applications are back on the
rise again after a monthlong decline in filings, according to the Mortgage
Bankers Association.

Mortgage
applications increased 5.3 percent the past week, with most of the increase
attributed to a surge in applications for government loans. Government loan
applications increased 17.6 percent.

“Purchase application volume jumped last week largely due to another
sharp increase in applications for government loans,” said Michael Fratantoni,
MBA’s Vice President of Research and Economics. “Borrowers were likely motivated
to apply for loans before the scheduled increase in FHA insurance premiums.”

The seasonally adjusted purchase index
rose by 10 percent, while applications for refinancing increased 2.7 percent
from the previous week, MBA reports.

“Refinance activity increased somewhat, as rates dropped to their
lowest level in a month towards the end of the week,” Fratantoni
said.

Source: “Mortgage Applications Rose 5.3% After
Month-Long Decline,”
 HousingWire
(April 20, 2011)

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