Higher Mortgage Applications despite Increase in Rates

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Higher Mortgage Applications despite Increase in Rates

By Mike Maynard

RISMEDIA, May 25, 2007-(MarketWatch)-The volume of mortgage applications rose 1.6% in the week ended May 18 compared to the prior week, data compiled by the Mortgage Bankers Association show. Also on a seasonally adjusted basis, applications for mortgages to purchase homes increased 1.3% week to week, while refinancing applications were 1.9% higher.

Refinancings accounted for 42.3% of total applications, up marginally from 42.1% in the week ended May 11, while adjustable-rate mortgages reached 18.1% from 17.4%. Average contract interest rates on 30- and 15-year fixed-rate mortgages rose last week to 6.23% and 5.96%, respectively, from 6.13% and 5.81% a week earlier. One-year ARMs averaged 5.72%, up from 5.61%. Overall, the four-week moving average tracking mortgage applications activity was up 1.2%, the MBA said

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