Industry News

Home loan apps up in latest survey

Refinancings gain market share despite higher costs
Published on Oct 10, 2007

Home loan applications picked up last week despite an increase in long-term mortgage rates, the Mortgage Bankers Association reported today. The market composite index, a measure of total mortgage application volume, last week rose 2.4 percent on a seasonally adjusted basis from the final week of September, according to MBA. The index that tracks refinancings posted the strongest growth, at 2.7 percent, followed by the purchase-loan index, which gained 2.1 percent from the previous week. Interest rates on long-term loans were higher last week, while those on adjustable-rate mortgages (ARMs) fell, MBA reported. The average contract interest rate on 30-year fixed-rate mortgages climbed to 6.4 percent from 6.32 percent; the 15-year fixed rate grew to an average 6.03 percent from 5.95 percent; and the one-year ARM decreased to 6.15 percent from 6.21 percent. Points, which are loan-processing fees expressed as a percent of the total loan amount, averaged 1 on the 30-year loans, 1...

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