Mortgage Bankers Association weekly survey says the number of mortgage applications filed increased 48% last week; jump driven by refinancings.
March 26, 2008: 7:58 AM EDT
WASHINGTON (AP) -- Mortgage application volume rose 48.1% during the week ending March 21 compared with the previous week, according to the trade group Mortgage Bankers Association's weekly survey.
The MBA's application index increased to 965.9 from 652 the previous week.
Volume surged on an 82.2% increase in refinance application volume during the week. Purchase volume increased 10.6%.
Refinancings a key factor. Refinance applications accounted for 62% of all applications, after dipping below 50% last week for the first time all year. The refinance share of mortgage activity is at its highest since the week ending Feb. 8 when it accounted for 67.4% of mortgage activity.
The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.
An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 965.9 means mortgage application activity is 9.659 times higher than it was when the MBA began tracking the data.
The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50% of all residential retail mortgage originations each week.
Application volume surged as fixed-rate mortgage interest rates declined. The average rate for traditional, 30-year fixed-rate mortgages sank to 5.74% from 5.98%. The average rate for 15-year fixed-rate mortgages, often a popular option for refinancing a loan, declined to 5.23% from 5.24%.
The average rate for one-year adjustable-rate mortgages continued to climb, rising to 7.02% from 6.99%.
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