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The Mortgage Bankers Association (MBA) announced this morning that the number of Americans applying for a mortgage to purchase a home or refinance their current mortgage grew in the past week, according to the Mortgage Bankers Association (MBA). For the week ending January 5, the MBA's survey showed the weekly Market Composite Index, which measures mortgage loan application volume, increased by 16.6 percent overall from the previous week. Refinance applications increased by 17.3 percent, while purchase applications increased by 16.2 percent. Bob Walters, chief economist of Loans, says low long-term interest rates are fueling the rise in mortgage activity. "Both home purchase and refinance mortgage activity picked-up significantly following the holiday season, "said Walters. "With long-term interest rates remaining near record lows, and a large inventory of homes on the market, many consumers have taken advantage of a buyer's market. However, the window for buyers may be closing, as recent new and existing home sales data has hinted toward an improving real estate picture for 2007. On the refinance front, I think we are seeing two trends at work: many homeowners are continuing to move out of ARMs that are preparing to adjust to a higher interest level; and it's not unusual to see consumers focus on consolidating debt after the holidays by taking cash out."
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