Highest increase in mortgage demand
Due to and increase in the demand for purchasing home loans, there has been a rise in the mortgage applications. This rise has been stated to be the highest in four years by the MBA (Mortgage Bankers Association). This rise in the mortgage applications has been stated to be chiefly due to the rise in the demand for buying home loans. It was stated by the Mortgage Bankers Association as reported by the Reuters, that its mortgage applications index that was adjusted seasonally contains both refinancing loans and purchase loans, ended as on the 1st of Feb 08. This saw an increase of three percent, i.e. 1086.6, since the week that ended on March 26, 2004, it has been the highest. The 4 week moving average of the total mortgage applications was up by 10.4 %. The overall mortgage applications that were received last week touched 72.4 % and this was above their level a year ago.
However, some analysts have an altogether different opinion to present. There have been some defects within the Mortgage Bankers Association that have caused its stats to go wrong, as believed by some analysts. The Mortgage Bankers Association also counts the applications of the borrowers that have been denied. Due to the extensive tightening of the lending standards, there have been growing incidents where the potential borrowers have filed more than one application for the same loan. In fact, in some cases, there have been multiple applications. This in turn has accounted to the increase in numbers of the applications.
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