MBA: Mortgage Applications Rising Again As Interest Rates Fall

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Mortgage applications have risen after three straight weeks of declines, as interest rates on 30-year fixed-rate mortgages have again fallen below the psychological tipping point of five percent.

The Mortgage Bankers Association reported that its market composite index, which measures mortgage loan application volume, rose 8.2 percent last week on a seasonally adjusted basis, after decreasing 12.3 percent the previous week. On an unadjusted basis, the index increased 7.9 percent.

The interest rates on 30-year fixed-rate mortgages decreased to 4.97 percent, falling under five percent for the first time in three weeks. The previous week, they decreased to 5.04 percent from 5.07 percent.

Interest rates on 15-year fixed rate mortgages also decreased, falling from 4.53 percent to 4.33 percent, while rates on one-year adjustable-rate mortgages rose to 6.83 percent from 6.79 percent.

Elsewhere in the MBA's report, the refinance index spiked 14.5 percent from the previous week, when it plummeted 16.2 percent. The seasonally adjusted purchase index decreased 1.8 percent from the week before.

Unadjusted, the purchase index decreased three percent from the previous week, and 3.4 percent from the same week last year.

Refinance shares of mortgage activity increased, rising to 66.1 percent of total applications, after finishing at 62.3 percent the week before. The ARM share of activity decreased to 6.1 percent of applications from 6.9 percent the previous week.

The four week moving average for the seasonally adjusted market index fell, decreasing 5.5 percent. The same average for the seasonally adjusted purchase index is down five percent, and also down 5.7 percent for the refinance index.

Mortgage applications have risen after three straight weeks of declines, as interest rates on 30-year fixed-rate mortgages have again fallen below the psychological tipping point of five percent. The Mortgage Bankers Association reported that its market composite index, which measures mortgage loan application volume, rose 8.2 percent last week on a seasonally adjusted basis, after decreasing 12.3 percent the previous week. (Market News Provided by RTTNews)