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.
The mortgage applications index remained relatively flat for the second week in a row. For the week ended July 24th purchase applications held steady, dropping 0.1% after increasing 1.0% the prior week. Refinance applications increased a modest 2.0% after decreasing a modest 1.0% the prior week. The composite applications index, which includes both purchase mortgages and refinancings, increased 0.8% on the week after inching up 0.1% the prior week. In positive news for borrowers, mortgage rates dipped with the average interest rate for conforming loans (mortgage amount less than $417,000) sliding to 4.17% as compared to 4.23% for the prior week. (Source: Bloomberg)
What it Means for Mortgage Borrowers
After some pretty wild gyrations over the course of the first half of the year, mortgage application activity was relatively calm to close out July. Steady application activity and a drop in interest rates are both positive developments for borrowers. If you have been thinking about refinancing now may be a good time to start the process. Use our Refinance Calculator to determine how much money you can save by refinancing your mortgage. If you are a prospective home buyer you should consider taking advantage of lower interest rates to make your move. Use our Mortgage Qualification Calculator to determine what size mortgage and home you can afford based on today’s mortgage rates.
The FREEandCLEAR Mortgage Expert