Mortgage Bankers Weekly Survey: Mortgage Refinance Applications Increase

Mortgage Bankers Association for the week of 5/18/2010

Fixed rate mortgages continue to decline this week, with the 30-year loan averaging 4.61% its lowest average this year. The MBAA reports their  Market Composite Index: (loan application volume) increased 7.8 percent. 

Their Refinance Index:  increased 13.2 percent from the previous week and is at its highest level since the week ending December 10, 2010. Rates continue to decline and people are taking advantage of low rates.
However, this isnt helping sell homes.  Mortgage applications increased 7.8 percent from one week earlier, according to data from the Mortgage Bankers Associations Weekly Mortgage The MBAA reports their  Purchase Index:  increased 1.1 percent compared with the previous week and was 36.9 percent lower than the same week one year ago. However Refinance Index did increase by 3% to 66.7%
Although low rates are not translating into many home sales, I do think these refis are helping people fix their personal balance sheets and hopefully, this is keeping some people out of the foreclosure cycle

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