U.S. MBA’s Mortgage Applications Index Increased 5.5% (Update1)
By Bob Willis
Sept. 12 (Bloomberg) — Mortgage applications in the U.S. rose 5.5 percent last week, reflecting gains in both purchases and refinancing.
The Mortgage Bankers Association’s index of applications to buy a home or refinance a loan rose to 657.4 from 622.9 the prior week. The group’s purchase index rose 5.2 percent and its refinancing gauge rose 6 percent.
The two-year housing recession is likely to deepen as stricter lending rules make it harder and more expensive to get loans or refinance. Some economists say the applications report overstates activity because the survey only includes retail lenders, which have probably seen an increase in business as many wholesale brokers closed their doors.
“The survey overstates activity,'’ said Michelle Meyer, an economist at Lehman Brothers Holdings Inc. in New York. “We discount the MBA survey and continue to look for home sales to fall through next year.'’ Read rest of the entry.
