Thanks to a substantial rise in homeowners applying for refinances during the last few days of January and first days of February, overall mortgage requests spiked considerably, mortgage records indicate.
According to the Mortgage Bankers Association's Weekly Mortgage Applications Survey, mortgage requests increased 7.5 percent during the week ending February 3. The improvement from the week before was largely due to a 9.4 percent growth in refinancing activity. The Purchase Index also notched up, but very slightly.
Refinancing accounted for a larger portion of overall activity during the week as well, making up 80.5 percent of all applications - a 0.5 increase from a week earlier. Additionally, the four-week moving average for loan activity rose nearly 5 percent.
Though low home loan rates, improved household incomes and other economic factors likely played a role in the jump in mortgage activity, a report by Fannie Mae shows many consumers expect home prices to remain affordable throughout 2012, which may spur loan applications and home purchases in the future.