Home loan applications up as mortgage interest rates dip
Mortgage rates declined slightly during the week ending January 14, 2011, resulting in an uptick in home loan applications, particularly for a mortgage refinance.
The Weekly Mortgage Applications Survey by the Mortgage Bankers Association (MBA) rose by five percent on a seasonally adjusted basis over the previous week. Refinancing applications represent 73 percent of mortgage applications, the highest percentage since the week ending December 10, 2010.
“Mortgage rates have moved somewhat lower since the beginning of the year, as mixed data on the job market continue to cloud the outlook for the economy,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Refinance applications have picked up, as borrowers take advantage of lower rates, but purchase applications remain quite low, indicating that home sales are unlikely to pick up any time soon.”
HSH.com reported an average interest rate for a 30-year fixed-rate home loan at 5.05 percent with 0.33 points, down from 5.12 percent with 0.29 for the week ending January 7, 2011.
