Refis, New Home Mortgages "March-ing" At A Brisk Pace

(Thursday, March 04, 2004) - The month of March is proving that the refi boom and the new-housing surge are still with us. In its Weekly Mortgage Applications Survey for the week ending March 12, the Mortgage Bankers Association (MBA) announced a recent surge in activity as interest rates, once again, dropped.

"We have been expecting a sharp up-tick in refinance applications as borrowers become more aware of low rates now available," said Jay Brinkman, MBA's vice president of research and economics. "The share of applications for adjustable rate mortgages is staying the same at almost 28% of the applications and over 42% of the dollar volume. This means that a sizable percentage of these refinance applications are for adjustable rate loans."

Meanwhile, the mortgage industry is also benefiting from the healthy market in new-home construction. The March Housing Market Index (HMI), a survey conducted by the National Association of Home Builders (NAHB), came up with a score of 64, the same it had been in February. An HMI score of 50 is average for the survey that rates builders' evaluations of sales and other market conditions in their industry.

"Highly favorable financing conditions, solid house-price performance and excellent demographics continue to drive the new-homes marketplace," said David Seiders, chief economist of NAHB. "Builders evidently are deriving confidence from these developments and registering realistic expectations for the future."

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