The Mortgage Bankers Association's most recent Weekly Mortgage Applications Survey showed a significant increase in home loan submissions, as more borrowers attempted to refinance their loans.
The Market Composite Index, which gauges the volume of home loan submissions, was up 9.3 percent on a seasonally adjusted basis. Unadjusted, the index grew 9.2 percent. The Refinance Index, which measures how many borrowers applied to adjust their current loan, increased 11.2 percent, while the Purchase Index was up 2.6 percent on an adjusted basis from the previous week.
"With lower rates, refinance application volume increased to its highest level since August 19, 2011," said MBA vice president of Research and Economics Michael Fratantoni. "Purchase application volume also increased. However, the increase was in conventional purchase applications, which were up by 4.9 percent."
The four-week averages for the Market and Refinance Indices were up, growing 1.96 percent and 2.60 percent, respectively. The average for the Purchase Index declined 0.18 percent.
With more mortgage applications being submitted during the week, more sales of Houston properties may take place soon and further improve the region's real estate market.
Courtesy of 2M Realty News