Mortgage Applications Decrease Slightly Following Thanksgiving Week Surge
Last week, the number of Americans applying for mortgages dropped from the previous week, according to a report released today by the Mortgage Bankers Association (MBA).
The Index, which measures and compares mortgage loan application volume from week to week, showed that for the week ending December 5 mortgage activity decreased 7.1% from the previous week’s numbers. The number of refinance applications decreased 0.9 percent, while applications from those seeking to purchase a home fell 15.5%.
Bob Walters, chief economist for Quicken Loans, says the decline is not surprising considering the previous weeks' surge, and that mortgage activity should remain strong over the next few weeks.
“While applications may have been somewhat lower last week, it’s important to remember we are coming off the previous two week’s record numbers. The recent rate drop was a huge incentive for consumers to refinance into fixed rate loans or enter the market to purchase a home,” Walters said.
“As long as rates remain in this range, it’s likely that strong mortgage activity will continue, as consumers take advantage of a holiday gift that comes in the form of lower or more secure mortgage payments.”
feeds.quickenloans.com
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