Mortgage Application Volume Up Last Week

Washington, DC, March 31, 2010--Mortgage application volume rose last week as demand for home purchase loans reached the highest level since October, according to the Mortgage Bankers Association.

The MBA said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 1.3 percent for the week ended March 26.

The purchase index increased 6.8 percent, hitting its highest level since the week ended Oct. 30.

Michael Fratantoni, the MBA's vice president of research and economics, said the activity may reflect the coming expiration of a homebuyer tax credit. Loans must be closed by June 30 and contracts signed by April 30.

The refinancing index decreased 1.3 percent, reaching its lowest level since the week ended Feb. 19.

Rates for 30-year fixed-rate mortgages averaged 5.04 percent in the latest week.