Mortgage applications decreased for a second consecutive week, according to data from the Mortgage Bankers Association for the week ending Jan. 27.
Overall applications fell 2.9 percent from the previous week, as refinances decreased 3.6 percent and mortgages applications for purchases declined 1.7 percent. Refinances comprised exactly four-fifths of all applications, down from 81.3 percent the previous week.
About 10 percent of mortgage refinances can be attributed to the expanded Home Affordable Refinance Program as outlined in President Obama’s State of the Union address, according to Michael Fratantoni, vice president of research and economics at the MBA.
Additionally, in December, all 50 states witnessed an increased in mortgage refinance activity.
Mortgage rates fell across the board for the week, largely because the Federal Reserve announced that interest rates would remain low through the end of 2014, according to Fratantoni.
Rates for 30-year fixed-mortgages with conforming loan balances were down to 4.09 percent from 4.11 percent, while jumbo loan rates slumped to 4.33 percent from 4.39 percent. FHA-backed 30-year loan rates fell one-hundredth of a percentage point to 3.96, while 15-year mortgage rates decreased to 3.36 percent from 3.40 percent. — Adam Fusfeld
