Home Loan Applications Drop; Mortgage Rates Up

(AP)  Applications for home loans dipped last week as mortgage rates ticked up slightly from the lowest level in decades.

The Mortgage Bankers Association says overall applications fell 1.5 percent from a week earlier. Applications to refinance home loans fell 3.1 percent, the first drop in six weeks. Those taken out to purchase homes, however, rose 6.3 percent to the highest level since May. The numbers are adjusted for seasonal factors.

Applications to refinance loans made up about 82 percent of all home loan activity, down from nearly 83 percent a week earlier.

Rates have been at or near the lowest level in decades since spring as investors have shifted money into safer Treasury bonds. That has lowered their yields, which mortgage rates tend to track.

The average rate for a 30-year fixed loan rose to 4.5 percent from 4.43 percent a week earlier. Rates on the 15-year fixed-rate mortgage, a common refinancing option, increased to 4 percent from 3.88 percent.

The Mortgage Bankers Association's survey covers more than 50 percent of all applications nationwide.

[KeithDrippingSprings]

Is this news supposed to be a surprise? The story was pretty short, just the facts mam, I would like to hear from someone that either isn't preaching doom and gloom or cheerleading for the Democrats. I think both of them are full of it but a well reasoned story about what we are facing in the near future would be interesting.

Don?t get me wrong I think the Republicrats are full of it too.

[afmcalax]

Beware the banks and mortgage companies are out to fleece the American populace once again. To gain these rates one must pay exhorbitant points on the loan amount. Before taking one of these front loaded mortgages, figure out the amount of months it will take to regain the money paid in points. Most people will figure out they were better off with their old mortgages.