Digital News Report – The Mortgage Bankers Association (MBA) reports that home purchases are increasing but applications for refinance are declining.
Overall the number of loan applications are decreasing. As of October 1st, the application volume “decreased 0.2 percent on a seasonally adjusted basis from one week earlier”. Unadjusted the index decreased 0.3 percent.
The refi index was down 2.5 percent while the purchase index increased 9.3 percent. The association has not seen an increase like that since the week ending May 7, 2010.
“The increase in purchase activity was led by a 17.2 percent increase in FHA applications, while conventional purchase applications also increased by 3.6 percent,” said Jay Brinkmann, MBA’s Chief Economist.
By: Tina Brown