At FREEandCLEAR, we continue to 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. Mortgage application activity has been flat-to-down over the past several months but the most recent MBA mortgage applications index report showed a rebound in activity.
For the week ended September 12th, 2014, the purchase application index increase 5.0% as compared to the prior week. The refinance application index increased 10.0% as compared to the prior week. The composite index, which includes both purchase and refinance mortgage applications, increased 7.9% as compared to the prior week. In total, mortgage application activity increased significantly as compared to the prior holiday-shortened week, reversing the recent trend that showed a decline in mortgage applications. (Source: Bloomberg)
What it Means for Borrowers
The most recent application index report is a positive sign for the mortgage market, especially for the refinance market where homeowners are still looking to refinance despite the recent uptick in interest rates. An increase in application activity is sure to be welcomed by mortgage lenders who had been experiencing a recent decline in business. Although interest rates increased over the last several weeks, they remain relatively low and now continues to be a good time to buy a home or refinance your mortgage (depending on your current interest rate and loan program). Use our Mortgage Qualification Calculator to determine what size mortgage you can afford or our Refinance Calculator to assess if it makes sense for you to refinance your mortgage.
The FREEandCLEAR Mortgage Expert