U.S. mortgage applications fall as rates rise

New York /
Jan.January 25, 2012 08:30 AM

After the previous week’s monumental rise, U.S. mortgage applications fell back to earth and declined 5 percent for the week ending Jan. 20, according to weekly data released today by the Mortgage Bankers Association. Mortgage applications for purchases dropped 9.7 percent while applications for refinancings, which comprised 81.3 percent of total applications compared to 82.2 percent the previous week, declined 5.2 percent.

Interest rates for mortgages largely increased for the week, led by 15-year fixed-rate mortgages, whose rates increased seven-hundredths of a percentage point to 3.40 percent. Meanwhile, rates for 30-year fixed-rate mortgages with conforming loan balances increased to 4.11 from 4.06 percent and rates for 30-year mortgages backed by the FHA rose to 3.97 percent from 3.91 percent. Rates for 30-year fixed-rate jumbo loans actually decreased slightly to 4.39 percent from 4.40 percent.

The MBA also reported overall December refinancing activity by type of mortgage, and found that 56.3 percent of all borrowers chose 30-year, fixed-rate loans. On the other hand, 24.3 percent chose fixed-rate, 15-year mortgages. — Adam Fusfeld


Related Articles

arrow_forward_ios
From left: Black Knight CEO Anthony Jabbour and Intercontinental Exchange CEO Jeffrey Sprecher (Black Knight, Intercontinental Exchange, iStock)
Intercontinental Exchange expands mortgage play with $13B Black Knight buy
Intercontinental Exchange expands mortgage play with $13B Black Knight buy
Nima Ghamsari, co-founder, Blend Labs (Blend Labs, iStock)
Mortgage tech firm lays off 200 as rates surge, industry slumps
Mortgage tech firm lays off 200 as rates surge, industry slumps
From left: Richard Benson-Armer, chief people, performance and culture officer, Better.com; Vishal Garg, CEO, Better.com (Activant Capital, Better.com, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
“Prudent and necessary”: More layoffs at Better.com
“Prudent and necessary”: More layoffs at Better.com
Movement Mortgage CEO Casey Crawford (Movement Mortgage, iStock)
More mortgage lenders lay off staff as rates rise, applications slow
More mortgage lenders lay off staff as rates rise, applications slow
Better.com CEO Vishal Garg (Getty Images, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Better.com floats voluntary resignations after mass layoffs
Better.com floats voluntary resignations after mass layoffs
Sotheby's International Realty's Nikki Field and Compass' Diana Sutherlin (The Field Team, Compass, iStock / Photo illustration by Priyanka Modi for The Real Deal)
What brokers are seeing as mortgage rates climb
What brokers are seeing as mortgage rates climb
Mortgage rates surge, capping fastest rise since 1994
Mortgage rates surge, capping fastest rise since 1994
Mortgage rates surge, capping fastest rise since 1994
From left: Greg Schwartz and Carey Armstrong, co-founders of Tomo (Tomo, iStock/Illustration by Steven Dilakian for The Real Deal)
Digital mortgage startup Tomo expands as competition pulls back
Digital mortgage startup Tomo expands as competition pulls back
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...