MBA: Hurricane Hammers Applications in NY, NJ, CT

Hurricane Sandy caused residential loan applications to plunge 60% in New Jersey last week, with New York and Connecticut suffering declines of 50% and 40%, respectively, according to new figures compiled by the Mortgage Bankers Association.

“Other East Coast states also saw declines over the week, while many states in other parts of the country had increases in application volumes,” said Mike Fratantoni, MBA vice president of research and economics.

The measurement is for the week ending Nov. 2, the comparison sequential.

Although the news for lenders in the mid-Atlantic area is indeed bad, nationwide, applications fell by a modest 5% from the week prior.

The refinance share of applications remained constant at 80% of new business with consumers once again overwhelmingly opting for fixed-rate products: 96% of requests.  

Meanwhile, rates on 30-year fixed-rate conventional mortgages decreased to 3.61% from 3.65% with upfront charges increasing to 45 basis points from 39.