Mortgage Application Trends Show Higher Refinancing Activity

Chicago, IL (PRWEB) April 04, 2015

The Federal Savings Bank was pleased to see that the mortgage applications rose as the spring home buying season began, as indicated by Mortgage Bankers Association data on April 1st. Mortgage application volume was 4.6 percent higher for the week ending on March 27. Economists said the increase in mortgage applications comes after another healthy rise in home sales.

“This week’s mortgage application survey falls right into line with recent indications that home sales – new, existing and pending – are on the rise, as is consumer sentiment,” said Lynn Fisher, vice president of research and economics at MBA, according to CNBC on April 1st.

The National Association of Realtors said the pending home sales index was up 3.1 percent in February to reach the highest level since June 2013.

NAR Chief Economist Lawrence Yun said home sales showed solid growth with the improvement in the job market. Additionally, mortgage rates are low, and rents could rise, which may push more buyers into the market.

With mortgage rates continuing to decrease, refinancing activity could increase as existing homeowners aim to take advantage of low rates and save money on interest.

Refinancing applications up

A gain in refinancing applications suggests that mortgage refinance rates are favorable for current homeowners. The MBA report found refinancing applications were 4 percent higher for the week ended March 27. Greater refinancing application volume is part of a larger trend of increased applications.

In the week ended March 20, the MBA said refinancing encompassed more of all mortgage activity in the week.

“The refinance share of mortgage activity increased to 61 percent of total applications from 59 percent the previous week,” the MBA said in the week ended March 20 report.

Overall, refinancing activity is on an upward trend with the latest week showing a 4 percent jump in refinancing applications week over week.

For more information on mortgage refinancing rates, contact the Federal Savings Bank, a veteran owned bank, to learn more about refinancing.

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