Mortgage applications surged last week as homebuyers rushed to take advantage of slightly lower mortgage rates just before new federal rules kick in.
Mortgage applications increased 25.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 2, 2015.
The new Truth in Lending (TILA) – Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure rule goes in to effect on Saturday, Oct. 3.
Refinance applications rose 24 percent, seasonally adjusted, and purchase applications were up by 27 percent.
“The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change,” said Lynn Fisher, MBA’s Vice President of Research and Economics.
The average loan size of applications in the weekly survey increased by 6.9 percent, driven by a 12.1 percent increase in the average size of refinances.
The material has been provided by InstaForex Company – www.instaforex.com