New mortgage loan activity edges higher, refis drop

With average rates hovering below 4 percent for all but one week so far in 2012, mortgage records indicate that requests for home loans edged higher during the week ending April 27.

With average rates hovering below 4 percent for all but one week so far in 2012, mortgage records indicate that requests for home loans edged higher during the week ending April 27.

Overall mortgage application activity rose 0.1 percent during the week, according to the Mortgage Bankers Association. Although only a marginal change, this could indicate an upward trend of activity, as the housing market enters its peak season.

Meanwhile, as the rate of borrowers requesting new mortgages inched higher, refinancing activity declined. According to the industry group, refinancing requests fell to an overall share of just 72.6 percent. The previous week refinances accounted for roughly 73.4 percent of all activity.   

Additionally, government initiatives, such as the Home Affordable Refinance Program and Home Affordable Modification Program, continued to play a significant role in the opportunities provided for distressed borrowers in need of home loan restructuring.

The share of investors capitalizing on the bargain prices available through real estate-owned properties, including foreclosures and short sales, was at 5.7 percent of all loan requests in February. This is slightly less than the previous month when the share stood at 6.1 percent.



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