Mortgage applications appear to be on the rebound after several weeks of volatility. According to data released this week by the Mortgage Bankers Association, the Market Composite Index increased 5.3 percent on a seasonally adjusted basis during the week ended February 22.
This is the second week in a row where the index has increased following an extended period of declines and slight upticks that coincided with elevated mortgage rates. However, with a drop in rates earlier this year which currently remain stable, mortgage activity seems to be on the rise.
“Mortgage rates were little changed last week,” said Mike Fratantoni, Senior Vice President and Chief Economist for the MBA. “Homebuyers are responding favorably to this more stable rate environment.”
Both the Purchase and Refinance Indices increased last week, 6 and 5 percent respectively.
Meanwhile, mortgage rates have dropped approximately .625 percent than they were last November, creating a positive outlook on the future of the housing market. Conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.