The law of physics prevailed last week and mortgage applications, riding
high for the previous two weeks, returned to earth. The Mortgage Bankers Association (MBA) said
its Market Composite Index, a measure of loan applications volume, was 3.2
percent lower during the week ended January 23 than it had been a week
earlier. On an unadjusted basis the
index was down 12 percent.
It was another week
in which seasonally adjusted numbers were tweaked to account for a holiday, in
this case Martin Luther King Day, but the data was still an abrupt departure
from the two full weeks that kicked off 2015.
During the week ended January 16 the seasonally adjusted index rose 14.2
percent on top of an increase of 46.7 percent the week before. The unadjusted indices had been up even more
dramatically, with increases of 17 percent and 119 percent respectively.