Mortgage Application Volumes up Last Week

Mortgage application volumes experienced a 7.5 percent increase last week, according to a survey by the Mortgage Bankers Association (MBA). This is a clear indication that falling home prices are attracting some buyers.

Refinance application volumes rose 8.7 percent, while purchase volumes increased 6.7 percent and ultimately contributed to the increase in application volumes for the week ended July 4th.

Of all applications filed last week, 37.3 percent represented those for refinancing and was an increase from 36.3 percent the week before. Adjustable-rate mortgages also saw an increase from 8.5 percent the week before to 10 percent last week.

The four- week moving average for all mortgage was down 2.3 percent on a seasonally adjusted basis, the survey revealed.

The MBA's survey covers half of all U.S retail residential mortgage applications.