Weekly mortgage applications climbed high right before the implementation of the TILA-RESPA Integrated Disclosure (TRID) rule was implemented Oct. 3, the Mortgage Bankers Association (MBA) reported.
According to MBA’s weekly Mortgage Applications Survey, mortgage applications rose 25.5 percent during the last week of September, the Purchase Index soared another 27 percent and the Refinance Index rose 24 percent in the days before TRID was implemented.
“The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change,” MBA Vice President of Research and Economics Lynn Fisher said. “The average loan size of applications in the weekly survey increased by 6.9 percent driven by a 12.1 percent increase in the average size of refinances.”
The adjustable-rate mortgage (ARM) share of activity increased to 7.6 percent of total applications; however, the refinance share of mortgage activity decreased to 57.4 percent of total applications from 58.0 percent the previous week.
For specific mortgage applications, the FHA share of total applications decreased to 12.7 percent from 13.8 percent a week ago, the VA share of total applications decreased to 9.2 percent from 10.3 percent and the USDA share of total applications remained unchanged from 0.7 percent the week before.
Cover Story: