This an archival news page. Go to our current Mortgage News page for current information and news..
U.S. home mortgage applications rise
May 10, 2005.
According to the MBA, the strong demand for mortgages was despite higher interest rates on fixed- and adjustable-rate loans (ARMs). Despite the increase, interest rates are lower than last year. The fixed 30-year mortgage rate as of May 7, 2004 was 6.32 %. Interest in floating-rate loans versus fixed-rate loans continues to fuel demand for mortgages.
The Mortgage Bankers Association’s seasonally adjusted index of mortgage application activity went up 9.4 % to 781.0. The MBA's seasonally adjusted index of refinancing applications went up 9.8 % to 2,263.3. The MBA's purchase index rose 9.4 % 526.2. Fixed 30-year mortgage rate was 6.32 %. Fixed 30-year mortgage rates averaged 5.77 % last week, excluding fees, up 3 basis points from 5.74 % the previous week.
Applications for ARMs rose to 35.3 % of total applications from 33.4 % the previous week, the MBA said. Refinancings also increased as a percentage of all mortgage applications, at 39.2 % of total applications from 39.1 % the previous week
The average contract interest rate for 15-year fixed-rate mortgages was up by 3 basis points last week to 5.34 %, up from 5.31 % last week. One-year adjustable-rate mortgages rose to 4.20 % from 4.14 % last week. Mortgage rates are expected to rise, so acting now and locking in a low rate is the best course.
