U.S. mortgage applications rise, as interest rates reach historic lows

New York /
Dec.December 12, 2012 08:30 AM

The number of mortgage applications during the week ending December 7  increased 6.2 percent on a seasonally adjusted basis and 6 percent on an unadjusted basis, the Mortgage Bankers Association announced today.

The Refinance Index grew 8 percent from last week, reaching its highest level since the week ending October 12, 2012, while the seasonally adjusted Purchase Index grew by 1 percent from one week earlier. Unadjusted, however,  the Purchase Index fell 4 percent from last week, but was 4 percent higher year-over-year. The share of refinancing activity increased to 84 percent of total applications. The adjustable-rate mortgage share of activity held at 3 percent of total applications.

“Continued uncertainty due to the lack of resolution regarding the fiscal cliff led interest rates lower last week, with mortgage rates reaching a new low in our survey,” Mike Fratantoni, MBA’s Vice President of Research and Economics, said. “Refinance activity increased, with the refinance index hitting its highest level in two months, and the refinance share reaching its highest level since January 2009.  Applications for purchase increased for the fifth consecutive week, and are running almost 10 percent above their level at this time last year.”

Interest rates for 30-year fixed-rate loans with conforming balances decreased 3.47 percent, the lowest rate in the history of the survey, from 3.52 percent. Jumbo loan rates decreased to 3.77 percent from 3.79 percent. Rates for Federal Housing Administration-backed 30-year fixed-rate loans decreased to 3.32 percent, the lowest rate in the history of the survey, from 3.34 percent —Christopher Cameron


Related Articles

arrow_forward_ios
Exhausting other options, buyers flock to fixer-uppers
Exhausting other options, buyers flock to fixer-uppers
Exhausting other options, buyers flock to fixer-uppers
Better.com CEO Vishal Garg (Better.com, iStock)
Mortgage lender Better to go public via SPAC merger
Mortgage lender Better to go public via SPAC merger
(iStock)
Drop in home refinancing crimps mortgage firms’ profits
Drop in home refinancing crimps mortgage firms’ profits
From left: 909 Third Avenue, 79 Fifth Avenue, 240 West 37th Street and 27 East 62nd Street (VNO, Cercone Exterior Restoration, Google Maps)
These were the largest Manhattan real estate loans in April
These were the largest Manhattan real estate loans in April
Lenders are being stingy about granting home equity lines of credit. (iStock)
Home values are up, but just try getting a line of credit
Home values are up, but just try getting a line of credit
(Getty)
Mortgage applications resume decline after one-week surge
Mortgage applications resume decline after one-week surge
Hispanics account for more than half of U.S. homeownership growth in the past decade despite making up only 18 percent of the population. (iStock)
Buenas noticias: Hispanic homeownership soars
Buenas noticias: Hispanic homeownership soars
Refinances made up 60 percent of all applications, up slightly from 59.2 percent the previous week. (iStock)
Mortgage rates dip, triggering surge in loan requests
Mortgage rates dip, triggering surge in loan requests
arrow_forward_ios

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

Loading...