Industry News

Home loan apps increase in latest survey

Purchases trump refis as interest rates inch higher

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Despite a drop in refinance activity, consumers looking to purchase homes boosted overall mortgage application volume last week, the Mortgage Bankers Association reported today. The group's market composite index, a measure of home loan application volume, rose 3 percent on a seasonally adjusted basis from the previous week. The index that tracks purchase loans jumped 12 percent (seasonally adjusted) during the period, but that growth was offset by a 1 percent decrease in the refinance index. Borrowing costs on long-term loans were higher last week, MBA reported. The average interest rate on 30-year fixed-rate mortgages edged up to 5.61 percent from 5.6 percent one week earlier, and the average rate on 15-year fixed loans gained to 5.09 percent from 5.04 percent. The average rates on the one-year adjustable-rate mortgage (ARM), however, declined to 5.62 percent from 5.7 percent. Points, or loan-processing fees expressed as a percent of the total loan amount, averaged 0.98 o...