Industry NewsMortgage

Home loan apps slide 28%

Survey: Costs up on fixed-rate products, down on adjustables

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Mortgage application volume slid 28.7 percent last week as long-term interest rates rose slightly, the Mortgage Bankers Association reported today. According to MBA, the seasonally adjusted decline was led by a 38.1 percent drop in the index that tracks refinance applications, followed by an 11.8 percent dip in the purchase-loan index. As a result, the refinance share of loan applications fell to 53.4 percent from 62 percent the week before. The average interest rate on 30-year fixed-rate mortgages last week edged up from 5.74 percent to 5.75 percent, and the 15-year fixed rate gained from 5.23 percent to 5.27 percent. The points that borrowers paid to attain these rates averaged 1.19 on the 30-year loans, up from 1.13 in last week's survey, and 1.13 on the 15-year loans, down from 1.15. Costs on adjustable-rate mortgages (ARMs) dipped in the survey, with the average rate on one-year ARMs sinking from 7.02 percent to 7 percent and points falling from 1.72 to 1.39. As a r...