Home Loan Volume Shows No Decline
A surge in refinance as well as purchase applications was reported by the Mortgage Bankers Association (MBA), who released their weekly Market Composite Index this morning. The Index measures loan applications week to week, and is considered the most significant statistical survey of mortgage activity in the industry.
Many Americans are moving from Adjustable Rate Mortgages (ARMs) that will soon reach higher interest levels to fixed rate programs. That’s the primary factor some experts believe is playing a role in the continuing mortgage loan application increase.
For the week ending January 5, 2007, the Index showed an overall 16.6 percent increase compared to the previous week. Purchase applications increased by 16.2 percent and refinance applications increased 17.7 percent.
In addition to the move from ARMs preparing to adjust higher, some industry observers attributed the continuing increase to sustained consumer focus on debt consolidation. Market watchers also noted the trend towards taking cash out is not unusual following the holidays.
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