Industry News

Rates rise, borrowers rush to refinance

Latest survey finds purchase loans on the decline

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Overall mortgage applications rose 1.4 percent last week on a seasonally adjusted basis from the week before, taken higher by a jump in refinancings, the Mortgage Bankers Association reported today. Although the seasonally adjusted purchase index decreased by 0.8 percent to 385.9 from 388.9 the previous week, the refinance index increased by 4.6 percent to 1,587.5 from 1,518.1 one week earlier. The refinance share of mortgage activity increased to 39.6 percent of total applications from 38 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 27.2 percent of total applications from 27.6 percent the previous week, and is now at its lowest since February 2004. The average contract interest rate for 30-year fixed-rate mortgages increased to 6.54 percent from 6.45 percent, with points including the origination fee decreasing to 0.98 from 1.01 for 80 percent loan-to-value ratio loans. Points, which are fees charged by lenders for loan processing, ...