U.S. mortgage applications up 0.4 percent

Nathan Andrada – Fourth Estate Cooperative Contributor

Washington, DC, United States (4E) – The average number of Americans filing for mortgages gained 0.4 percent on a seasonally adjusted basis as interest rates dropped again from the previous week, according to a survey released Wednesday.

The Mortgage Bankers Association’s (MBA) weekly gauge showed seasonally adjusted total applications went up 0.4 percent from the previous week. Refinance applications jumped 3 percent, and applications to purchase a home declined 4 percent.

The market composite on an unadjusted basis rose 14 percent from the previous week, the MBA said. The refinance index climbed 3 percent, while index for the seasonally adjusted purchase fell 4 percent.

Mortgage rates started to fall as concerned investors sold off their stock market portfolio and fled to the relative safer bond market because of concerns about the emerging markets.

Wednesday’s results showed the declining average rate on the 30-year fixed conforming loan from 4.52 percent to 4.47 percent last week, the lowest level since November. The 30-year fixed-rate mortgages with jumbo-loan balances fell from 4.47 percent to 4.42 percent.

The MBA’s survey had the average rate for Federal Housing Administration-backed 30-year fixed-rate mortgages down to 4.12 percent from 4.18 percent.

The 15-year fixed-rate mortgage average rate fell to 3.53 percent from 3.59 percent, while the average for the 5/1 ARM fell to 3.15 percent from 3.25 percent.

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