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Mortgage Applications Retreat as Covid Weighs on Markets
Wednesday, April 8, 2020
The negative effects
of the COVID-19 epidemic appear to have set in last week as mortgage
applications, which had managed to increase even after much of the nation's
business shut down, tumbled. The Mortgage Bankers Association (MBA) said its
Market Composite Index, a measure of loan application volume, declined 17.9
percent on a seasonally adjusted basis during the week ended April 3, and 18 percent
lower on an unadjusted basis. The Refinance
Index decreased 19 percent but was still 144 percent higher than the same week
one year ago. The refinance share of mortgage activity decreased to 74.2
percent of total applications from 75.9 percent the previous week. Purchase mortgage
applications declined by 12 percent on both an adjusted and an unadjusted basis
from the week ended March 27. The Purchase Index level was 33 percent lower
than during the same week in 2019.
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