Spring Buying Season Fuels Purchases
Mortgage News from Quicken Loans
The Mortgage Bankers Association (MBA) announced this morning that the number of Americans applying for a mortgage to purchase a home or refinance their current mortgage increased in the past week.
For the week ending April 27, the MBA’s survey showed that the weekly Market Composite Index, which measures mortgage loan application volume, increased by 0.6 percent overall from the previous week. Refinance applications decreased by 3.2 percent, while purchase applications went up by 4 percent.
Bob Walters, chief economist of Quicken Loans, says that the most recent rise in mortgage activity is fueled by low long-term interest rates paired with the inventory of unsold homes.
“It is no surprise that purchase applications have increased as we've moved deeper into the spring home buying season,” said Walters. "With long-term rates remaining near six percent and the inventory of unsold homes, I expect to see continued improvement in home sales throughout the spring and summer, and we also expect this refinancing trend to continue as home owners leverage the favorable rates to refinance out of ARMs.”
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
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