Storm affects home loan application volumes

Hurricane Sandy significantly affected the mortgage application level during the week ending November 2, according to a report from the Mortgage Bankers Association.

Hurricane Sandy significantly affected the mortgage application level during the week ending November 2, according to a report from the Mortgage Bankers Association.

While large sections of the country had improved home loan levels, the Weekly Mortgage Applications Survey showed the Market Composite Index fell 5 percent from the week previous. Additionally, the Refinance Index fell by the same rate, as did the Purchase Index.

The main problems with applications occurred in the Mid Atlantic and Northeast, as the storm stopped many from going through with business at that time, and this showed in the mortgage data.

"Last week's storm had a significant impact on application volumes on the East Coast," said Mike Fratantoni, vice president of research and economics for the MBA. "Applications fell more than 60 percent compared to the prior week in New Jersey, almost 50 percent in New York and nearly 40 percent in Connecticut."

The report added that mortgage refinance activity did not change from the previous week's level of 80 percent.

Despite these temporary issues, real estate records impressed more home sellers, as a survey from Redfin showed that more than four-fifths of sellers felt that sales prices would jump even higher in the next two years.



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