Industry News

Mortgage applications tumble in latest survey

Borrowers deterred as rates post largest increase in months

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Mortgage application volume posted a sharp drop last week as long-term interest rates gained considerably, the Mortgage Bankers Association reported today. The group's market composite index, a measure of home loan application volume, fell 22.6 percent last week on a seasonally adjusted basis from the first week of the month. Leading the decline was a 27.9 percent drop in the index that tracks refinance applications, followed by an 11.5 percent decrease in the purchase-loan index. Borrowing costs rose across most loan types last week, MBA reported. The average interest rate on 30-year fixed-rate mortgages jumped 37 basis points during the latest survey period, rising from 5.72 percent to 6.09 percent. Also up 37 basis points was the average rate on 15-year fixed mortgages, climbing from 5.18 percent to 5.55 percent. Average rates on one-year adjustable mortgages (ARMs), however, held steady at 5.72 percent. Points, or loan-processing fees expressed as a percent of the total...