New purchases drive mortgage activity upwards
10/27/2010
By Credit.com Staff
The overall mortgage market saw a seasonally adjusted 3.2 percent increase for the week ending October 22 over the previous week, according to the latest report from the Mortgage Bankers Association. This jump in mortgage activity was brought on largely because of more demand for purchases, which saw a 3.9 percent climb last week. However, the refinance market remained strong as well, improving another 3 percent.
Refinances still made up the lion's share of all mortgage activity, accounting for 82.3 percent of all activity, but purchases increased their percentage slightly, from 17.6 percent to 17.7 percent, the report said. Meanwhile, more consumers opted to obtain a home loan with a fixed rate, as the share of adjustable rate mortgages in the market fell from 5.8 percent to 5.3 percent.
More consumers are seeking mortgages these days, both for new purchases and refinances of their old deals, because rates have been hovering at or near all-time lows for several months.
