The Real Deal New York

Mortgage applications drop, as rates increase

January 30, 2013 08:30AM

The number of mortgage applications for the week ending January 25, 2013 decreased 8.1 percent on a seasonally adjusted basis from the previous week, the Mortgage Bankers Association announced today.

The Refinance Index decreased 10 percent from the previous week.The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. Unadjusted, the Purchase Index decreased 6 percent compared with the previous week and was 2 percent higher than the same week one year ago.

The refinance share of mortgage activity also dropped to 79 percent of total applications from 82 percent the previous week.The adjustable-rate mortgage share of activity increased to 4 percent of total applications.

Interest rates for 30-year fixed-rate loans with conforming balances, continuing an upward trend, increased to 3.67 percent, the highest since September of last year. Interest rates for jumbo loans also increased to 3.95 percent, up from 3.85 percent. Rates for Federal Housing Administration-backed 30-year fixed-rate loans increased to 3.48 percent from 3.40 percent. —Hiten Samtani