TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/257884
40 | Th e M Rep o RT o r i g i nat i o n s e r v i c i n g a na ly t i c s s e c o n da r y M a r k e t ORIGINATION the latest refinances Push Up application volume Refinance isn't totally dead, yet. M ortgage applications increased for the third straight week in mid-January, con- tinuing a trend that started with the opening of the new year. According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey, loan application vol- ume rose 4.7 percent (seasonally adjusted) for the week ending January 17. On an unadjusted ba- sis, application volume was up 7 percent from the previous week. The overall increase came entirely from a continued recov- ery in refinance numbers. The survey's Refinance Index was up 10 percent week-over-week, with refinance share accounting for 64 percent of total applications, the highest level in a month. Meanwhile, the seasonally adjusted Purchase Index dropped 4 percent compared to the prior week. Unadjusted, the Purchase Index rose 2 percent but fell 15 percent short year-over-year. Despite the recent upward trend, weak application numbers in the last few months have ana- lysts anticipating a slower year for originations. MBA brought down its 2014 estimates in its latest forecast, pointing to declining ap- plications and rising interest rates. The applications survey for last week shows the average 30-year fixed interest rate falling to 4.57 percent--the lowest level since November--with points increasing to 0.36 for 80 percent loan-to-value ratio loans.