Industry News

Rates rise, refis fall

Loan applications down for second week

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Overall mortgage applications dipped 2.2 percent last week on a seasonally adjusted basis from the week before, as rising interest rates took a toll on refinancings, the Mortgage Bankers Association reported today. The seasonally adjusted refinance index decreased by 5.3 percent to 1,758.2 from 1,857 the previous week, while the purchase index increased by 0.4 percent to 384.7 from 383.3 one week earlier. The refinance share of mortgage activity decreased to 45 percent of total applications from 46.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 26.5 percent of total applications from 26.9 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages increased to 6.33 percent from 6.27 percent, with points including the origination fee increasing to 1.15 from 1.08 for 80 percent loan-to-value ratio loans. Points, which are fees charged by lenders for loan processing, are expressed as a percent of the t...