Triangle Business Today

Refinance activity tracks mortgage rate movement

Posted July 7, 2011 6:57 p.m. EDT

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.

About this Blog:

Jeremy Salemson, CEO of Corporate Investors Mortgage Group, blogs about economic trends and data and their impact on Triangle business. Each week, he interviews a Triangle-area business leader for a personal look at the local economy.