Mortgage Applications up by 25% according to Recent Reports
The new regulations imposed on mortgage acquisition plus the fluctuating interest rate are enough ingredients to fuel the public's anxiety and go house-shopping. Thus, there is a resulting increase in the number of mortgage applications by nearly 20 percent.
Reports from the CNBC News revealed that as of October 2, the increase in the volume of mortgage application was compared on a week-to-week basis citing a data from the Mortgage Bankers Association (MBA).
Lynn Fisher, Vice President of MBA said the recorded increase could be attributed to multiple factors, which include the fact that there have been numerous applications put on hold due to the recent changes in TILA-RESPA regulations.
"The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change," Fisher was quoted as saying by the CNBC News who leads the company's research and economics division.
It shows that both applications to purchase a house and refinancing showed positive projections. For example, applications to purchase a home recorded the highest increase week-on-week with a total of 27 percent, followed by the 20 percent increase on applications for refinance.
As compared to a year ago data, applications for purchasing a property rose by 49 percent, which is considered an impressive data considering the fact that current records are saying that home sales are now in decline. The 49 percent increase recorded earlier is now the highest ever recorded since 2010.
It can be recalled that the recently updated regulations on mortgage acquisition aims to streamline the entire application process and to protect the borrowers from secretive and deceptive lenders, thus requiring all lenders to provide all the needed information about the loan at the minimum of three days before closing it, which took effect last October 3.
On a weekly basis, the mean loan size of application rose by 6.9 percent, which can be attributed to a 12.1 percent hike in the mean value of applications for refinance.
For bulk loan requests, refinance applications has recorded the biggest increase, reaching to more than 417,000. On the other hand, a 1 percent increase has been recorded for average loan sizes, the same report showed.