Finally, Mortgage Applications Jump, the Holiday Effect?

Mortgage bankers, after experiencing several weeks of declines, saw new applications spike by 11% for the week ending Sept. 7, according to new figures released Wednesday morning.

Then again, the Mortgage Bankers Association, which reported the numbers, noted that results may have been pushed upward by adjustments for the Labor Day holiday.

As might be expected, refinancings dominated the application landscape, accounting for 80% of all new business for the week, compared to 79% the period prior.

According to new figures released by National Mortgage News and the Quarterly Data Report, refis accounted for 72% of business in the second quarter.

The trade group’s adjusted Refinance Index increased 12% from the previous week, while the seasonally adjusted Purchase Index increased 8%.

MBA said the level of refinance applications might be overstated because some lenders who rely primarily on the Internet/consumer direct channel for originations saw little, if any, decline in applications for Labor Day compared to lenders that rely on retail offices as a source of new business.

The trade group believes that online borrowers, armed with an extra free day, had more time to apply over the Internet during the holiday weekend.

MBA found that on average their members were offering conforming 30-year fixed rate loans at 3.75%. Similar FHA products were being offered at to 3.50%.

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