Can you believe it- Mortgage applications status

The interest rates are rising, foreclosure numbers are moving up in the country, people are selling there home, in such a condition what can you expect? Panic, helplessness, frustration? Yes, they are there, but another fact may surprise you a lot. The mortgage application rates are increasing, yes you have heard it correct, the mortgage application rates are increasing. Mortgage Bankers Association’s (MBA), a trade group, revealed recently that application volume increased 2.5 percent for the last week.

MBA maintains a weekly application index. In the last week the index was 811.8 which is a increase from the previous week’s index of 791.8. Though this is not a very good number in comparison to the highest peak of 1,856.7 in May, 2003, but in a condition like that is prevailing right now, it is good enough.

The mortgage rates are increasing.
30-year fixed-rate mortgages  present rate-  6.07 percent from 5.82 percent during the prior week
one-year adjustable-rate mortgages  present 6.31 percent from 6.28 percent in the prior week

In the same condition the refinance volume has recorded an increase of 4.3 percent. The volume of the house purchase increased 1.7 percent. Refinance applications share in the total mortgage application increased to 57.6 percent.

So this is a situation that is opposite to the prevailing one. Anyway this is a sign in of improvement in the condition. This report is a representation of all the real estate organization and so of the condition in the region, as it includes different residential retail mortgage organizations (almost 50 percent of them), commercial banks, mortgage bankers etc.