Mortgage Applications Rise as Rates Stay Low
Applications to purchase homes rose 3.4 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.
On an unadjusted basis, the purchase index rose 15.3 percent compared with the previous week, but was down 35.7 percent compared to the same week a year ago.
This is only the second time in 10 weeks that purchase mortgage applications have increased.
“The strength in purchase applications comes from government loans, likely indicating that prospective buyers are drawn by the lower down payment requirements,” says Michael Fratantoni, MBA’s vice president of research and economics.
Mortgage rates remained low:
• 30-year fixed-rate mortgages decreased to 4.59 percent from 4.69 percent.
• 15-year fixed-rate mortgages decreased to 4.05 percent from 4.12 percent.
• 1-year ARMs decreased to 7.17 percent from 7.20 percent.
Source: Mortgage Bankers Association (07/21/2010)
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30-Year Rate Back Above 5 Percent
Mortgage rates rose to 5.08 percent from 4.99 percent a week ago, pushing the average interest rate offered on 30-year fixed-rate mortgages to its highest level since the first week of 2010, according to Freddie Mac.
The increase in mortgage rates occurred as long-term interest rates rose higher due to concerns about inflation as the economy improves, and as the Federal Reserve ended its program to buy $1.25 trillion in mortgage-backed bonds issued by Fannie Mae, Freddie Mac and other government-sponsored agencies.
Also, the 15-year fixed mortgage rose to 4.39 percent from 4.34 percent, while 5-year hybrid mortgages fell to 4.10 percent from 4.14 percent.
Source: Los Angeles Times, E. Scott Reckard (04/02/10)
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Recent Uptick in Mortgage Applications
The number of mortgage applications for home purchases increased 5.7 percent last week compared to the previous week on a seasonally adjusted basis and was up 7.2 percent on an unadjusted basis, according to the Mortgage Bankers Association weekly survey.
Overall, mortgage applications rose only 0.5 percent last week. But applications to refinance declined 1.5 percent. Purchase applications were down 10.7 percent compared to the same week a year ago. And the refinance share of mortgage activity was as low as it has been since October 2009.
Mortgage rates increased:
· 30-year fixed-rate mortgages increased to 5.01 percent from 4.95 percent.
· 15-year fixed-rate mortgages increased to 4.32 percent from 4.27 percent.
· 1-year ARMs increased to 6.80 percent from 6.77 percent.
Source: Mortgage Bankers Association (03/10/2010)
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Long-Term Mortgages Near Record Low
Thirty-year, fixed-rate mortgages moved closer to the all-time low of 4.82 percent reached in May, falling to 4.87 percent this week from 4.94 percent a week ago, according to Freddie Mac. Home owners who refinance have an opportunity to reduce their payment on a 30-year, fixed-rate loan for $200,000 by nearly $134 a month from a year ago, when long-term rates averaged 5.94 percent. Other mortgage averages were as follows:
* 15-year loans fell to 4.33 percent.
* Five-year adjustable-rate mortgages dropped to 4.35 percent.
* One-year ARMs rose to 4.53 percent.
Source: Chicago Sun-Times, Francine Knowles
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