According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage application demand fell last week due to the effects of the storm on the East Coast. The Market Composite Index, which measures total mortgage loan application volume, was down 5.0 percent from the previous week, due to a 5.0 percent drop in both the Refinance and Purchase Index. Michael Fratantoni, MBA’s vice president of research and economics, said the storm had a significant impact on application volumes on the East Coast, with dramatic declines in New York, New Jersey, and Connecticut. According to Fratantoni, many other areas of the country experienced increases in application volume. The average contract interest rate for 30-year fixed-rate mortgages fell to 3.61 percent from 3.65 percent the week before. The MBA’s survey covers more than 75 percent of all U.S. retail residential mortgage applications. More here and here.
