Refinancing Dominates Recent Mortgage Activity
The Mortgage Bankers Association’s Purchase Index for the week ending Friday (1/8) rose a slight 0.8 percent over the prior week’s 3.6 percent increase. The Refinance Index showed a jump of 21.8 percent, with mortgage rates hovering around 5.13 percent for a 30-year loan.
The refinance portion of total applications increased to 71.5 percent from 68.2 percent the previous week.
For the four-week moving average, the purchase index is down 6.4 percent with the refinance index down 8.0 percent. The data is adjusted for seasonal variations.
While the data remains choppy on a week-to-week basis, the strength in refinance applications suggests fewer foreclosures for existing homeowners down the road, but the dominance of refi’s provides a weak outlook for new construction and after-market sales.
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