Refinance, purchase applications rise for home loans
Homeowners may have attempted to compare refinance rates more than previous weeks, according to a weekly survey.
The Mortgage Bankers Association’s Refinance Index went up during the week of June 11, increasing 21.1 percent when compared to the first week of the month. The organization noted that the level of the index is at its highest point since May of last year.
As a share of all mortgage applications, refinances made up 74.8 percent, the highest amount witnessed since the week of December 18, 2009. Purchase applications also increased 7.3 percent despite the recent end of the government’s tax credit for homebuyers.
With the tax credit, first-time buyers could qualify for up to $8,000 for purchasing a home, while repeat buyers could have seen as much as $6,500.
"While it is clear that purchase applications in May dropped sharply as a result of the tax credit induced increase in applications in April, it is unclear whether we are seeing the beginnings of a rebound now," MBA vice president of research and economics Michael Fratantoni said.
As applications increased, mortgage rates posted mixed results, according to the MBA. The average interest rates for 30-year fixed and one-year adjustable mortgages went up, while 15-year fixed loans saw a decline.