Weekly Mortgage Application Volume Increases Even With Fourth Of July

New York, NY (AHN) -- Mortgage application volume rose 7.5 percent during the week ending July 4, a positive sign considering the holiday period, according to statistics from the trade group Mortgage Bankers Association's weekly application survey.

The MBA's application index rose to 513.4 during the week, up from the 477.7 the week before.

The most recent survey includes an adjustment to account for the Independence Day holiday. Refinance application volume climbed 8.7 percent, while purchase volume jumped 6.7 percent on an adjusted basis. Refinance applications accounted for more than a third of all applications.

The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom. An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 513.4 means mortgage application activity is 5.134 times higher than it was when the MBA began tracking the data.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers half of all residential retail mortgage originations each week. Application volume rose despite an increase in interest rates. The average rate for traditional, 30-year fixed-rate mortgages rose to 6.43 percent, during the week ending July 4, up from 6.33 percent, the week before.