At FREEandCLEAR, we follow the Mortgage 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.
For the week ended December 19th, the composite mortgage application index, which includes both home purchase mortgages and refinancings, increased 1.0%, reversing a 3.3% decrease for the prior week. The increase in the composite application index was balanced as both the purchase and refinance mortgage application indices increased 1.0% for the week as compared to the prior week which saw a 7.0% decline in purchase applications and flat refinance applications. Interest rates remained attractive with the average mortgage rate for a 30 year fixed rate conforming loan decreasing slightly from 4.06% to 4.02%. (Source: Bloomberg)
What it Means for Mortgage Borrowers
Although the increase in the application index was relatively small, it represents a positive sign for the mortgage market as 2014 comes to a close. Additionally, continued low interest rates, which hit their lowest point in a year-and-a-half, bode well for both the home purchase and refinance markets heading into 2015. In addition to tracking Santa Claus this holiday season you should keep track of mortgage rates using the INTEREST RATES feature on FREEandCLEAR to determine if now is the right time for you to buy a home or refinance your mortgage.
The FREEandCLEAR Mortgage Expert