Mortgage applications increase 13 percent

The Mortgage Bankers Association recently announced that the number of mortgage applications filed in the United States increased 13 percent last week compared to the week prior, due to continually low mortgage rates.

According to the survey, refinance activity rose 15 percent between the weeks, while purchasing jumped 8.3 percent to reach its highest level since August 5. Refinance activity accounted for 76 percent of all mortgage applications, up from 73.9 percent the previous week.

“Refinance applications increased sharply, with some lenders seeing refinancing volume double,” said MBA chief economist Michael Fratantoni. “Some lenders indicated they are beginning to see an increase in HARP loans.”

Housing Predictor reported that the new Home Affordable Modification Program features that commenced December 1 do not have loan-to-value limits for refinancings of mortgages guaranteed by Fannie Mae and Freddic Mac. Previously, homeowners were limited to 125 percent of their home equity. Further, homeowners with lower credit scores have more opportunities to refinance and avoid foreclosure under the new program.

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