MBA Refi Index up significantly

The Mortgage Bankers Association (MBA) Refinancing Index rose to 7250 for the week ending May 9, 2003, which is about a 20% rise compared to previous week’s showing of 6077.8.

A steep dip in mortgage rates during the last two days of the past week triggered another round of refinancing, said Citgroup in research this morning. The Refi Index is approximately 23% below the previous record of 9387. The firm said that if mortgage rates stay at current levels, the Index may likely post another record high at the next release.

Mortgage rates are currently at record lows. Citigroup’s survey of lenders’ Web Sites showed no-point rates between 5.375% and 5.75%. Meanwhile, the Freddie Mac Survey Rate is going to be released tomorrow, which usually reflects mortgage rates in effect at the start of the week. Citigroup expects the Freddie Mac Survey Rate to dip to approximately 5.45%.

Meanwhile, the MBA seasonally adjusted Purchase Index essentially stayed flat from the previous week. The Purchase Index dipped to 415.2 from 416.0 the week prior.