The MBA reported the mortgage loan application volume increased by 1.4 percent from a week earlier.  On an unadjusted basis, the Index increased 0.4 percent compared with the previous week but was down 25.6 percent compared with the same week one year earlier.

The four week moving average for the seasonally-adjusted Market Index was up 0.9 percent.  The four week moving average is down 0.8 percent for the Purchase Index, while this average is up 3.7 percent for the Refinance Index.

The refinance share of mortgage activity increased to 39.6 percent from  previous week. The adjustable-rate mortgage share of activity decreased to 27.2 percent of total applications from 27.6 percent the previous week. The ARM share is at its lowest since February 2004.

Eventhough those numbers are pretty low in difference, it shows many people are moving to renegotiate their mortgages hoping to find a better rate of locking themsleves in a better deal.  We will see more and more lenders and banks find exotic products to make sure they do not get caught up in a wave of foreclosures.   it is in a bak’s best interest to have its clients bringing in money and not have it’s assets locked in auctions.

Here is the Mortgage Bankers release.