Mortgage Applications Surge on Low Interest Rates
Mortgage News from Quicken Loans
With long-term interest rates remaining at their lowest levels of the year, mortgage applications surged last week, according to the latest Weekly Mortgage Applications survey from The Mortgage Bankers Association (MBA).
For the week ending December 8, the MBA's survey showed that the weekly Market Composite Index, which measures mortgage loan application volume, increased 11.4 percent overall from the previous week. Refinance applications, which rose 15.8 percent, saw their largest gain in over a year, while purchase applications also showed significant growth with a week-over-week increase of 8.7 percent.
Bob Walters, chief economist of Quicken Loans, says long-term interest rates are to credit for the most recent rise in mortgage activity.
"The current run of low rates has caused consumers to reevaluate their mortgage position," said Walters. "This has led many consumers to refinance out of ARMs that are set to adjust higher in the coming months. In addition, the current rates, paired with a favorable real estate market, have allowed many consumers to get into homes at very affordable prices."
This article is reprinted by permission from Quicken Loans © 2006 Quicken Loans Inc. All rights reserved.
