Mortgage Demand Increases Again

Mortgage applications reversed course, edging up due to a recent spike in home owners looking to refinance and take advantage of lower rates, the Mortgage Bankers Association reported last week.

Mortgage application activity -- which includes both applications for refinancings and home purchases -- rose 1.3 percent for the week ending Oct. 4.

Broken out, refinancing applications gained 2.5 percent last week, now at its highest level since early August. Recently, the refinancing index reached its lowest level since June 2009, as rising mortgage rates dampened demand for refinancing.

Applications for home purchases -- considered a gauge for future home buying -- dropped 1 percent from the previous week, the MBA reports.

Mortgage rates fell last week amid the government shutdown. The 30-year fixed-rate mortgage dropped 7 basis points to average 4.42 percent, according to the MBA. In September, it had matched a high for the year at 4.8 percent.

Source: “U.S. mortgage applications edge up on more refinancing: MBA,” Reuters (Oct. 9, 2013)