At FREEandCLEAR, we follow the Bankers’ Association (MBA) mortgage applications index which measures both purchase and refinance applications for mortgage lenders across the country. An increase in the MBA applications index reflects an increase in mortgage applications while a decrease in the index reflects a decline in mortgage applications. Mortgage application activity for the week ended September 26th, 2014 was relatively flat, continuing the overall lackluster trend observed over the past quarter.
For the week ended September 26th, the purchase application index was unchanged as compared to the prior week. The refinance application index declined a modest .3% as compared to the prior week. The composite index, which includes both purchase and refinance mortgage applications, declined .2% as compared to the prior week. In total, mortgage application activity held steady as compared to the prior week, consistent the recent general trend showing flat-to-declining mortgage applications. The decline in the index is attributed to a cooling housing and refinancing market after years of strong performance. On the positive side, interest rates declined slightly for the week although this did not have an immediate impact on mortgage applications. (Source: Bloomberg)
What it Means for Borrowers
Borrowers welcomed the slight decrease in interest rates after a slight increase in rates over the past several weeks. Additionally, the longer the mortgage market remains lackluster, the more aggressive lenders will become for borrowers’ mortgage business. Always remember to compare multiple lenders when shopping for a mortgage or refinancing. Borrowers can use increased lender competition to their advantage by negotiating better terms for their mortgage such as a lower interest rate or reduced closing costs. Check out the COMPARE LENDERS feature on FREEandCLEAR to review interest rates and fees for multiple lenders in your area.
The FREEandCLEAR Mortgage Expert