U.S. Mortgage Applicants Surged Last Week On Refinancing

NEW YORK, Feb 8 (Reuters) - Applications for U.S. home mortgages jumped last week, fueled by increased demand for refinancing as interest rates fell, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 7.5 percent in the week ended Feb 3.

The MBA's seasonally adjusted index of refinancing applications climbed 9.4 percent, while the gauge of loan requests for home purchases was nearly flat, edging up just 0.1 percent.

The refinance share of total mortgage activity also increased to 80.5 percent of applications, from 80.0 percent.

Fixed 30-year mortgage rates averaged 4.05 percent, down 4 basis points from 4.09 percent the week before.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA. (Reporting By Leah Schnurr; Editing by Leslie Adler)

Earlier on HuffPost:

Comments

[mxfw9999]

01:59 PM on 02/08/2012

Just hpe that the banks assure that they all have between 25 and 30% down before they give them any loan

[jr3houpe1849]

01:36 PM on 02/08/2012

Most of these home owners will find that they cannot refinance because are too far under water

[Collapsing House Price]

12:28 PM on 02/08/2012

All refinancings, no new sales.

Housing prices are headed down so why buy now? Buy later after prices crater for 65% less.

[Si1ver1ock]

04:01 PM on 02/08/2012

I also think something is fishy here. Why would someone take on a large debt with so much uncertainty in the jobs market? Homes used to offer protection, now they are crushing the life out of their owners.

[Collapsing House Price]

04:53 PM on 02/08/2012

Thats right.

[Ozarks]

12:01 PM on 02/08/2012

Gee, I guess that means Romney's position that "investors" buy up foreclosed homes and rent them back to the original owners must be falling on its butt.

[rotorhead1871]

11:17 AM on 02/08/2012

Fixed 30-year mortgage rates averaged 4.05 percent, down 4 basis points from 4.09 percent the week before....

hello: a point is one percent......the decrease is .04%=.0004.....hardly 4 basis points....its really 4 hundredths of a point......BUT the decrease is good to see......how about 3.5% by August??

[frank day]

10:29 AM on 02/08/2012

This is good news.

I expect strong sales of new and existing homes this Spring and Summer.

[RollaJones]

10:35 AM on 02/08/2012

Don't get your hopes up. Virtually all of the mortgage applications were for refinancing.

From the article:

'the gauge of loan requests for home purchases was nearly flat, edging up just 0.1 percent.'

[adelphi sky]

11:47 AM on 02/08/2012

The article didn't specify how many were approved or denied. The way credit is now, you can have all the apps you want, but if 75% are denied, that's still bad news.

[jr3houpe1849]

01:38 PM on 02/08/2012

Denied due to being under water