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Refinancing Volume Surges on Slight Rate Drop
Wednesday, February 3, 2021
Borrowers looking
to refinance were quick to take advantage of a slight drop in interest rates
last week. The Mortgage Bankers Association
(MBA) said its Market Composite Index, a measure of mortgage loan application
volume, jumped 8.1 percent on a seasonally adjusted basis during the week ended
January 29, and was up 10 percent on an unadjusted basis. The index had declined in each of the two
previous weeks. The
Refinance Index increased 11 percent from the previous week, also reversing two
weeks of losses, and was 60 percent higher than the same week one year ago. The
refinance share of mortgage activity increased to 71.4 percent of total applications
from 70.7 percent the previous week. The
seasonally adjusted Purchase Index ticked up 0.1 percent and was 8 percent
higher on an unadjusted basis. The index was 16 percent above its level the same
week in 2020.
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