March 8, 2007 in Business

Mortgage applications jump to two-month high

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SAN FRANCISCO — With interest rates falling, the number of mortgage applications rose last week to its highest level in two months, the Mortgage Bankers Association reported Wednesday.

The number of mortgage applications gained 7.3 percent on a seasonally adjusted basis in the week ended March 2 compared with the previous week. Application volumes last week rose about 16 percent from the same week a year ago, the MBA said.

The number of applications for loans to buy homes rose 1 percent on a week-to-week basis and about 2 percent from a year ago. Purchase loans have been relatively flat for six weeks, the MBA’s data showed.

Meanwhile, applications for loans to refinance existing mortgages increased 15 percent to the highest level seen in 12 weeks from the week ended Feb. 23. Refinancing loans were up about 38 percent compared with this time last year.

Refinancings accounted for 46.1 percent of total applications filed last week after falling to a five-month low of 43.2 percent the week before.

Banks have tightened their lending standards, rejecting more loans lately. It’s possible that mortgage approvals could be flat or falling even with an increase in applications coming in the door.

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