MNI DATA IMPACT:US MBA Mkt Composite +5.3%, Refi +12% Aug 2 Wk

     WASHINGTON (MNI) - The Mortgage Bankers Association Wednesday reported a

large surge in mortgage activity in the August 2 week, with activity up 5.3% as

mortgage rates decreased to a 2-1/2 year low.

     Here are some of the key features of the report:

     - The Refinance Index rose by 12% to the highest level since 2016, but the

purchases index decreased by 2%. It was still up 7% year/year before seasonal

adjustment. 

     - The 30-year average rate for a 30-year fixed mortgage fell to 4.01% in

the current week from 4.08% in the previous week. The MBA said that the sharp

decline in rates was in part due to the FOMC's rate cut, but more importantly

reflected the escalation of the trade war with China.

     - MBA said that it expects that another drop in rates in the coming week

that should boost refinancing activity further.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

[TOPICS: MAUDS$,M$U$$$,MK$$$$,M$$MO$]