Mortgage applications increase after 6-month decline

December 11, 2013

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After several weeks of mortgage applications declining, the trend has finally broken on the week ending on Dec. 6, according to the Mortgage Bankers Association.

The Market Composite Index, which includes all mortgage market activity, increased 1 percent from the previous week, indicating that more Americans were applying for home loans. As the end of 2013 approaches, the increased activity is a good sign for the housing market heading into 2014.

Refinance activity also increased, rising 2 percent on the MBA's index. On a seasonally adjusted basis however, the refinance applications were still 16 percent below the week preceding Thanksgiving. The total share of mortgage refinance activity increased to 65 percent of all market activity, a rise from the previous week's figure of 63 percent.

The purchase index rose 1 percent and was only 3 percent below the index rating from the week before Thanksgiving. Mortgage News Daily reported that the increase in mortgage activity is due to more borrowers applying for adjustable-rate mortgages, as many lenders are offering them as a low cost mortgage alternative to fixed terms.

Contact the Federal Savings Bank, a veteran owned bank, to find the best mortgage refinance rates.