Industry NewsMortgage

Demand for purchase loans up

Mortgage rates expected to hit 6% this year

Applications for purchase loans for the week ending March 5 were up a seasonally adjusted 5.7 percent from the week before, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey. Applications for refinancings were down 1.5 percent, as the average contract interest rate for 30-year fixed-rate mortgages increased to 5.01 percent from 4.95 percent, with points decreasing to 0.82 from 0.99 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The average contract interest rate for 15-year fixed-rate mortgages increased to 4.32 percent from 4.27 percent, with points decreasing to 0.88 from 1.36 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for one-year ARMs increased to 6.8 percent from 6.77 percent, with points increasing to 0.3 from 0.29 (including the origination fee) for 80 percent LTV loans. After reaching record lows in December, rates on 30-year f...