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. After an increase in the index for the week ended September 12th, 2014, mortgage application activity for the week ended September 19th, 2014 continued the overall downward trend observed over the past several months.
For the week ended September 19th, the purchase application index declined .3% as compared to the prior week. The refinance application index declined 7.0% as compared to the prior week. The composite index, which includes both purchase and refinance mortgage applications, declined 4.1% as compared to the prior week. In total, mortgage application activity decreased significantly as compared to the prior week, consistent the recent general trend that showed a decline in mortgage applications. The decline in the index is attributed to a cooling housing market and slightly higher interest rates. (Source: Bloomberg)
What it Means for Borrowers
A continued weakness in the mortgage application market could benefit borrowers as lenders may offer better terms as they compete to generate new business. Although interest rates remain relatively low, borrowers should continue to monitor rates as additional increases could deter home buyers or home owners looking to refinance. Check out the COMPARE LENDERS feature on FREEandCLEAR to review interest rates from multiple lenders in your area.
The FREEandCLEAR Mortgage Expert