Mortgage applications posted their first increase in the week ending September 7 after trending downward for many weeks, according to the Mortgage Bankers Association.
MBA's Weekly Mortgage Applications Survey showed application volume was up 11.1 percent on a seasonally adjusted basis from a week earlier. The increase is partially tied to the adjustment for the Labor Day holiday, as lenders who rely on online applications may have increased due to additional time Americans may have has to complete such applications.
Refinance and purchase activity also jumped, as the Refinance Index rose 12 percent compared to the previous week, while the Purchase Index increased 8 percent. The refinance share of mortgage activity went from 79 to 80 percent.
In addition to the adjustment for the holiday weekend, mortgage application volume may have increased due to mortgage rates returning to record lows in the past couple weeks. According to Freddie Mac, the average for 30-year fixed-rate mortgages dropped for two consecutive weeks, while 15-year FRMs have been trending downward as well.
