Refinance activity tracks mortgage rate movement
Posted July 7, 2011
According to the Mortgage Bankers Association, mortgage applications overall were down 5.2 percent last week, as higher rates impacted refinance activity – but interestingly enough, purchase activity was up considerably prior to the July Fourth holiday.
More specifically, the MBA’s seasonally adjusted refinance index, showed a steep decline of 9.2 percent for the week ending July 1 – but their purchase gauge rose 4.8 percent. The obvious note here is that the refinance transaction is much more sensitive to slight rate movement than is the purchase transaction.