Mortgage Bankers Association Reports Rise in Applications

Mortgage applications are up 1.3% this week, making some recovery after a 2.5% decline in the last week of August, according to the Mortgage Bankers Association.

The Refinance Index saw a 2% increase this week, with refinance activity up 1%, from 60 to 61. Although the Purchase Index fell 3% this week, purchase applications remain higher than they were at this time last year — a hopeful outlook.

While mortgage applications rose, there was also an overall decrease in mortgage loan rates. Although both saw a decrease this week, the fixed interest rates for 30-year-fixed-rate mortgages with jumbo loan balances (loans of $417,000 or more), with a decrease from 4.78% to 4.71% remains lower than rates for conforming loans (down from 4.8% to 4.73%) for a second week in a row.

Loans with a higher balance such as jumbo loans are riskier and are typically associated with higher interest rates.

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