The Fed’s 25 basis point rate increase, combined with a dip in 30-year mortgage rates, helped to boost home purchase applications and loan refinance activity:
The Refinance Index increased 16 percent from the previous week. The seasonally adjusted Purchase Index increased 0.2 percent from one week earlier. The unadjusted Purchase Index increased 7 percent compared with the previous week and was 25 percent higher than the same week one year ago.
We are especially interested in refinance rates. The majority of loans in our portfolio were originated more than 10-years ago. Given the high level of equity in the homes, and anecdotal evidence that consumer protection efforts have complicated new loan issuance, we expect refinance activity in our portfolio to remain robust and help drive returns.
Read more at http://www.calculatedriskblog.com/2016/02/mba-mortgage-applications-increased-in.html#5ijWu8613F2314bH.99