Mortgage Applications Rose
NEW YORK [Reuters] 9/14/06— Mortgage applications rose for a second consecutive week as demand for home purchase loans hit its highest level in two months, an industry trade group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, for the week ended Sept. 8 increased 3.2% to 584.2, its highest since mid-May.
FORECLOSURES INCH HIGHER: But late payments fall in Q2
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.32%, edging up 0.01 percentage point from the previous week. Interest rates were above year-ago levels of 5.72%, but below a four-year high of 6.86% touched in June.
The MBA's seasonally adjusted purchase mortgage index, widely considered a timely gauge of U.S. home sales, rose 5.3% to 410.2, its highest since early July. The index, however, was substantially below its year-ago level of 513.4.
The group's seasonally adjusted index of refinancing applications increased 0.1% to 1,597.0. A year earlier the index stood at 2,198.7.
The refinance share of applications decreased to 40.3% from 41.0% the previous week.
Fixed 15-year mortgage rates averaged 5.98%, up from 5.97%. Rates on one-year adjustable-rate mortgages (ARMs) increased to 5.96% from 5.91%.
The ARM share of activity decreased to 25.5% of total applications from 26.2% the previous week, its lowest level since October 2003.
After historically low mortgage rates fueled a five-year housing boom, a deluge of recent data showing a surge in the number of homes for sale and dwindling demand signals the once-robust market is cooling, industry analysts say.
Prices have started to level off and even decline in some geographic areas as the gap between the supply of homes for sale and demand for housing has increased.
The MBA's survey covers about 50% of all U.S. retail residential loans. Respondents include mortgage banks, commercial banks and thrifts.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, for the week ended Sept. 8 increased 3.2% to 584.2, its highest since mid-May.
FORECLOSURES INCH HIGHER: But late payments fall in Q2
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.32%, edging up 0.01 percentage point from the previous week. Interest rates were above year-ago levels of 5.72%, but below a four-year high of 6.86% touched in June.
The MBA's seasonally adjusted purchase mortgage index, widely considered a timely gauge of U.S. home sales, rose 5.3% to 410.2, its highest since early July. The index, however, was substantially below its year-ago level of 513.4.
The group's seasonally adjusted index of refinancing applications increased 0.1% to 1,597.0. A year earlier the index stood at 2,198.7.
The refinance share of applications decreased to 40.3% from 41.0% the previous week.
Fixed 15-year mortgage rates averaged 5.98%, up from 5.97%. Rates on one-year adjustable-rate mortgages (ARMs) increased to 5.96% from 5.91%.
The ARM share of activity decreased to 25.5% of total applications from 26.2% the previous week, its lowest level since October 2003.
After historically low mortgage rates fueled a five-year housing boom, a deluge of recent data showing a surge in the number of homes for sale and dwindling demand signals the once-robust market is cooling, industry analysts say.
Prices have started to level off and even decline in some geographic areas as the gap between the supply of homes for sale and demand for housing has increased.
The MBA's survey covers about 50% of all U.S. retail residential loans. Respondents include mortgage banks, commercial banks and thrifts.
posted by rjgny2004 at 5:44 PM
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