Increased Lending Rates Are Cutting Into Mortgage Application According to MBA

August 12, 2009 by · Leave a Comment
Filed under: Real Estate News 

Business Journal, Milwaukee – Increased lending costs put a crimp in mortgage applications last week.  The Mortgage Bankers Association’s index of applications to purchase or refinance a home fell 3.5 percent from the previous week.

The refinance index fell 7.2 percent in the week ended Aug. 7, reversing the 7.2 percent gain made in the previous week. The purchase index, however, increased 1.1 percent – the third gain in the last four weeks, according to the MBA.

The average interest rate for 30-year, fixed-rate mortgages increased to 5.38 percent from 5.17 percent, with points increasing to 1.18 from 1.02.

The average rate for 15-year, fixed-rate mortgages increased to 4.71 percent from 4.6 percent, with points increasing to 1.2 from 1.  The average rate for one-year, adjustable-rate mortgages increased to 6.71 percent from 6.67 percent, with points decreasing to 0.08 from 0.09.

On Tuesday, Zillow reported that, while home values have continued to fall, there are some areas posting slight gains. And, while home sales nationwide fell in June, compared with a year ago, they were up over May’s sales.

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