“The Market Composite Index, a measure of mortgage loan application volume, was 619.3 for the week ending Feb. 3, down 1.2 percent on a seasonally adjusted basis from 626.8 one week earlier, The Mortgage Bankers Association reported recently. On an unadjusted basis, the index increased 2.2 percent for the week ending Feb. 3 compared with the previous week and was down 16.4 percent compared with the same week one year earlier.
The refinance share of mortgage activity decreased to 42.1 percent of total applications for the week ending Feb. 3 from 43 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 29.8 percent of total applications from 30.5 percent the previous week.”
Im actually a bit surprised that the ARM activity was down. I would of expected in a increasing interest rate environment, more people would have selected an ARM product. However, given the fact that the long-end of the market (30 yr fixed) is offering rates roughly the same as short term fixed rates, I guess it makes sense that people are locking in the longest rate possible.
And while overall activity is down slightly, it still feels fairly healthy and strong out in the San Francisco market. Plenty of buyers!