Skip to main content

Refinancing Powers Mortgage Application Activity

Phil Hall
Aug 07, 2019
Photo credit: Getty Images/Magnetic-Mcc

The transition from July into August brought a new flurry of refinancing activity, according to data from the Mortgage Bankers Association (MBA) for the week ending Aug. 2.
The Market Composite Index increased 5.3 percent on a seasonally-adjusted basis from one week earlier, while the unadjusted index rose by an even five percent. Both the seasonally adjusted and unadjusted Purchase Index decreased two percent from one week earlier, although the latter was also seven percent higher than the same week one year ago. However, the Refinance Index increased 12 percent from the previous week and was a whopping 116 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 53.9 percent of total applications from 50.5 percent the previous week.
Among the federal programs, the FHA share of total applications decreased to 11.0 percent from 11.3 percent the week prior, while the VA share of total applications increased to 12.8 percent from 12.6 percent and the USDA share of total applications remained unchanged at 0.6 percent.
“The Federal Reserve cut rates as expected last week, but the bigger influence on the financial markets was the beginning of a trade war with China,” said Mike Fratantoni, MBA senior vice president and chief economist. “The result was a sharp drop in mortgage rates, which will likely draw many refinance borrowers into the market in the coming weeks. The 30-year fixed rate mortgage fell to its lowest level since November 2016, and the drop resulted in an almost 12 percent increase in refinance application volume, bringing the index to a reading over 2,000–its highest over the same time period. We fully expect that refinance volume will jump even higher this week given the further drop in rates.”

Fifth Third Bank Expands Down Payment Assistance Program

The program will provide up to $3,600 towards a down payment for families with low to moderate income.

Industry News
Jun 09, 2021
Filo Mortgage Launches Low-Rate Guarantee

National mortgage lender Filo Mortgage is offering to beat competitors' pricing by $1,000 with its Low-Rate Guarantee.

Industry News
Jun 08, 2021
FAU Index Shows Where Consumers Should Buy Or Rent

Consumers are better off renting in cities like Dallas, Texas

Industry News
Jun 07, 2021
Verus Title Inc. Expands Into Dallas-Fort Worth Texas

Verus plans to take advantage of the Dallas-Fort Worth market before expanding throughout the state.

Jun 07, 2021
Freddie Mac Multifamily Extends Forbearance Deadline To September

Freddie Mac Multifamily extended the deadline for requesting a new COVID-19 forbearance agreement for its Multifamily loans to September 30, 2021.

Industry News
Jun 04, 2021
Fannie Mae Launches 'Your Own Story' To Educate Future Homebuyers

Fannie Mae is seeking to help demystify the homebuying process for future homeowners with “Your Own Story.” A new campaign to educate future homebuyers on the entire process.

Industry News
Jun 04, 2021
Mike Eshelman
Jun 01, 2021
Two women having a conversation
May 27, 2021