The Mortgage Bankers Association (MBA) just reported that the volume of mortgage applications rose 6.7% in the week of June 26 through July 2, 2010. The week before showed a seasonally adjusted increase of 8.8% from the previous week.
Similarly, the amount of mortgage refinance applications submitted rose 9.2%. This is the highest volume of refinance applications submitted since April 2009. Current homeowners are taking advantage of the record-low interest rates to help lower their mortgage payments.
“Mortgage rates remained near record lows last week, as incoming data on the job and housing markets were weaker than anticipated,” said MBA vice president of research and economics, Michael Fratantoni, in a statement. “As more homeowners locked in to these low rates, the level of refinance applications increased to a new 13-month high.”
Basic qualifications for a refinance are up-to-date payments, good credit, and ability to repay. Unable to refinance? Try a loan modification instead.
Adjustable-rate mortgage (ARM) applications also contributed to the rise in mortgage applications submissions, increasing to 5.4% from 4.7% of total applications in the previous week.
On the downside, purchase mortgage applications have fallen for eight out of the past nine weeks. This is apparently the backlash from the rush-to-purchase-by-April 30 frenzy caused by the first-time homebuyer tax credit. Plus, increased credit scores needed to qualify for government-backed loans make it more and more difficult for potential buyers to even get a loan, so many are not bothering to apply.
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