Real Estate News

Slight uptick in February mortgage applications

Published: 10 Feb 2017

A slight increase in mortgage applications has moved the amount in a gentle reverse course, at least according to the latest data on Feb. 8, 2017. While this could be seen as a positive trend, it may also signify exactly how tumultuous current rates and activity in the housing sector in general are. At the same time, the current application rate could still be seen as a possible improvement in the bigger picture.

The data appeared in the recent Mortgage Bankers Association Weekly Mortgage Applications Survey. The survey charted activity for the first three days in the month, as well as the January days before it that also make up the same week.

According to this source, the unadjusted Market Composite Index increased 6 percent from the previous week, and just 2.3 percent with adjustments included. As with the other weekly surveys from this organization, the data drew from more than three-quarters "of all U.S. retail residential mortgage applications."

It was one of the few upward movements in a statement listing several different downward tracks. These include dips for interest rates, too, such as the average contact interest rates for mortgages with 30-year fixed rates with loan balances both below and above $424,000. It's worth noting that each of these decreases were less than 1 percentage point.

Speaking to CNBC, MBA Economist Joel Kan discussed the recent trajectory of mortgage rates in general, including the end of last year.

"Mortgage rates continued to show volatility from week to week, decreasing 4 basis points to 4.35 percent last week after two weeks of increases," Kan said. "Since reaching a recent peak of almost 4.5 percent toward the end of December, rates have bounced around the 4.3 percent mark for the past six weeks."

The MBA survey also said that the mortgage activity refinance share had reached a nearly 7-year low of 47.9 percent.