Industry News

Home loan applications rise in latest tally

Borrowers get in game as rates advance, survey finds

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Despite a sizeable jump in interest rates, mortgage applications last week continued to rise, the Mortgage Bankers Association reported today. The market composite index, a measure of total home loan volume, was up 1.1 percent on a seasonally adjusted basis from the week before. While refinancings took another hit, falling 3 percent from the last week of June, the index that tracks home purchases grew 3.8 percent, which pushed overall applications higher. As a result, the refinance share of applications decreased to 36.2 percent from 37.8 percent the previous week, and the adjustable-rate mortgage (ARM) share dropped from 21 percent to 20.4 percent. Interest rates posted significant growth last week, according to MBA, with the average rate for 30-year fixed-rate mortgages rising to 6.65 percent from 6.5 percent, the 15-year fixed-rate average growing to 6.31 percent from 6.2 percent, and the one-year ARM rate up to 5.6 percent from 5.49 percent. Points, or loan-processing fees expresse...