Mortgage application increased with 25.5 percent as mortgage rates lowers and borrowers rushed to file their applications before loan disclosure changes again.
According to reuters.com, the Mortgage Bankers Association has recorded a raise in their total mortgage applications totaling to 534.2 and equivalent to 25.5 percent compared to last week's applications. The surge in applications is also believed to be caused by the new mortgage regulations imposed last Saturday. Lynn Fisher, MBA's vice president of research and economics, said "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." The report also detailed the two new forms provided when applying for a mortgage loan.
"One of the new forms is a loan estimate given to consumers within three business days after submitting a loan application.
The second form provides information to help consumers understand all of the costs of the transaction, which is to be given three business days before closing."
According to cnbc.com, both refinancing purchasing a home application both experience a sudden increase. Refinance applications has recorded a 24 percent increase while purchasing applications recorded a 27 percent increase. Purchase applications are now up by 49 percent compared to the same week last year. Lynn Fisher also said "Refinance application activity increased the most among jumbo loan sizes, greater than $417,000. By contrast, average purchase loan sizes ticked up less than 1 percent, as increases in purchase applications were much more evenly distributed across all loan sizes."
Despite of the sudden increase in mortgage applications, it is still considered as considerably low. Population growth and increased demand for housing prevented the housing market to surpass at least half of the percentage of the housing boom last 2005- 2007. The current level of housing market is as low as the percentage during the 1990s.
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