Rates Drive Increase in ARM Application Volume

Rates Drive Increase in ARM Application Volume

A reduction in adjustable mortgage rates led some cost-stressed borrowers to forsake fixed-rate security and drove mortgage application volume up slightly during the week ended October 6.   The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, increased 0.6 percent on a seasonally adjusted basis after a 6.0 percent drop a week earlier. On an unadjusted basis, the Index increased 1.0 percent.   The Refinance Index rose 0.3 percent compared to the prior week and was 9.0 percent lower than the same week one year ago. The refinance share of mortgage activity dipped to 31.6 percent of total applications from 31.7 percent. [refiappschart] The Purchase Index was 1 percent higher than a week earlier on both a seasonally adjusted and an u