Mortgage applications down, rates up

The Market Composite Index, a measure of mortgage loan application volume, fell 9.8 percent
during the week ending January 16, as compared to the previous week,
according to the Mortgage Bankers Association. The index fell
to 1195.3 from 1324.8. The refinance index decreased 12.4 percent
during the same time, falling to 6491.8 from 7414.1. The average
contract interest rate for 30-year fixed-rate mortgages increased to
5.24 percent from 4.89 percent; the average interest rate for 15-year
fixed-rate mortgages increased from 4.63 percent to 4.99 percent; and
the interest rate for one-year ARMs stayed the same at 5.89 percent. The credit crunch and down economy have made obtaining mortgages increasingly difficult as banks have tightened restrictions, requiring better credit scores and more money for down payments. TRD