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Mortgage Applications Jump 7.1 Percent Amid Lowest Rates Since Election

Mortgage Applications Jump 7.1 Percent Amid Lowest Rates Since Election
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By    |   Wednesday, 07 June 2017 09:48 AM

Mortgage applications increased 7.1 percent last week as interest rates fell to their lowest levels since the November election.

The Market Composite Index, a measure of mortgage loan application volume, increased 7.1 percent on a seasonally adjusted basis from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. This week's results included an adjustment for the Memorial Day holiday.

The refinance share of mortgage activity decreased to 42.1 percent of total applications from 43.2 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to its lowest level since November 2016, 4.14 percent, from 4.17 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since November 2016, 3.39 percent, from 3.42 percent.

"Purchase application volume increased to its highest level since May 2010. Refinance activity bumped up as well in response to moderating rates, but remained generally subdued," Joel Kan, an MBA economist, told CNBC.

As mortgage rates continue to slide, Thursday's much-anticipated hearing on Capitol Hill, where former FBI Director James Comey is scheduled to testify, could either accelerate that slide or reverse it, CNBC reported.

"The potential shock is the unknown outcome of Comey's congressional testimony. It might not hit markets during business hours, and it might not hit markets at all," Matthew Graham, chief operating officer of Mortgage News Daily, told CNBC. "But there is a chance that it could cause a very big movement for better or worse."

(Newsmax wire services contributed to this report).

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Mortgage applications increased 7.1 percent last week as interest rates fell to their lowest levels since the November election.The Market Composite Index, a measure of mortgage loan application volume, increased 7.1 percent on a seasonally adjusted basis from one week...
Mortgage, application, Rates, home, loan, demand
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2017-48-07
Wednesday, 07 June 2017 09:48 AM
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