Industry NewsMortgage

Refis fuel jump in mortgage apps

Real estate brief
Published on Sep 10, 2008

Applications for mortgage loans were up a seasonally adjusted 9.5 percent for the week ending Sept. 5, driven by a 15.4 percent jump in applications for refinancings, according to a weekly survey by the Mortgage Bankers Association.Results of the MBA's Weekly Mortgage Applications Survey, adjusted to account for the Labor Day holiday, showed a 6.4 percent increase in purchase loans from the week ending Aug. 29. A 14.4 percent increase in applications for conventional purchase loans was offset by an 8.7 percent drop in applications for government purchase loans, which are largely FHA-backed loans.Premiums and minimum down-payment requirements for Federal Housing Administration loan guarantees are going up on Oct. 1, and seller-funded down-payment assistance will no longer be accepted by FHA unless Congress rescinds an impending ban (see Inman News story). The government purchase index jumped 19.9 percent during the week ending Aug. 29 -- possibly reflecting borrowers' attempts to obtain...

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