Industry News

Real estate purchases cool

More borrowers look to adjustable loans

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Overall home mortgage applications slipped 1.5 percent last week on a seasonally adjusted basis, as long-term interest rates continue to climb, according to the Mortgage Bankers Association's weekly survey. The MBA seasonally adjusted purchase index decreased by 1.7 percent to 444 from 451.6 the previous week. The seasonally adjusted refinance index decreased by 1.4 percent to 3,250.6 from 3,296.7 one week earlier. The refinance share of mortgage activity decreased to 57 percent of total applications from 58.5 percent the previous week. The adjustable-rate-mortgage share of activity increased to 27.2 percent from 26.3 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 5.63 percent from 5.58 percent one week earlier. Points including the origination fee decreased to 1.42 from 1.47 the previous week for 80 percent loan-to-value ratio loans. ...