After several weeks of application declines, it appears that low interest rates are finally causing an increase in new business.
According to new figures compiled by the Mortgage Bankers Association, loan applications increased on a sequential basis by 6.3% for the week ending Sept. 9. (The figures, which are seasonally adjusted, also take into account the Labor Day holiday.)
Refinance applications continued to dominate, accounting for 77.3% of all new business, compared to 77.1% one week prior.
As expected, consumers continue to favor 30-year and 15-year fixed rate products. MBA found that the average contract rate for a 30-year FRM declined 6 basis points during the week to 4.17%, setting another all time low. Points decreased to 0.94 from 1.04 (including the origination fee) for 80% loan-to-value ratio loans.
MBA tracks activity through its proprietary application index.
