Mortgage Applications Rise On Lower Interest Rates
The Mortgage Bankers Association reported Wednesday that requests for US home loans rose last week as falling interest rates drove demand for refinance loans, but purchase loan requests took a step backward as Americans were cautious to buy amid the uncertain economy. The group's seasonally adjusted index of mortgage application activity rose 4.1 percent percent in the week ended August 12th. The measure includes numbers for both purchase and refinance loan applications.
The group's measure of refinance requests accounted for all of the increase, as it rose 8 percent to its highest level since November, offsetting a disappointing 9.1 percent decline in the gauge of home purchase applications. Extreme volatility in US stock markets last week has many Americans too nervous to buy a home, and purchase application activity took a hit as a result.
The portion of total mortgage application activity accounted for by refinancing requests rose to 78.8 percent from 75.6 percent in the previous week. Mortgage giant Freddie Mac, meanwhile, reported the average interest rate for a 30-year, fixed rate mortgage during the week was 4.32 percent, down from an average of 4.37 percent in the previous week.
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