A hike in insurance premiums for FHA-backed loans resulted in a 10% jump in purchase-only mortgage applications last week, driving mortgage application volume up 5.3% on a seasonally adjusted basis, the Mortgage Bankers Association reports. Rates fell as well.
Michael Fratantoni, MBA's VP of research and economics says, "Borrowers were likely motivated to apply for loans before the scheduled increase in FHA insurance premiums. Refinance activity increased somewhat, as rates dropped to their lowest level in a month towards the end of the week." (Big Builder)
