A Glance at Recent Refinancing Statistics

The Mortgage Bankers Association’s index of refinance applications increased 7.2% in the week that ended last Friday as the average interest rate on 30-year fixed-rate loans fell 19 basis points, to 5.17%.

The climb during the week lifted the refinance index to about 35% over a recent low at the end of June.

The trade group said Wednesday that its index of purchase applications, which has not moved much for three weeks, also increased, by 0.9%.

The MBA’s overall index increased 4.4% and was 18% higher than a year earlier. The share of the total made up of refinance applications increased 16 basis points from the week before, to 54.2%.

Meanwhile, an index of applications in key markets maintained by Mortgage Maxx LLC fell 8.5% in the week that ended last Friday.

The company said Monday that homeowners are “still playing defense” in part because of stiff underwriting terms and predicted a further decrease in the index of more than 10% by Labor Day, reflecting “just how poorly government intervention has assisted to date.”

source: American Banker