Mortgage applications increase 4.5%
Mortgage applications increased 4.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 6, 2012. MBA reports a increases in both 30 year and 15 year fixed mortgage rates and 30 year FHA rates holding steady compared to the previous week.
I'm a little surprised to see that the refinance share of mortgage applications slipped down to 80.8% in comparison to last weeks highest for 2011 record of 81.9%. An excess supply of homes, a portion of which are distress properties is the major factor in the continued drop in home prices. This leaves home owners with few options, they either refinance or walk away from their mortgage.
Mortgage Applications Increase 4.5%
| Mortgage Product | Avg. Interest Rate (current) | Avg. Interest Rate (previous) |
| 30-year fixed-rate | 4.11% | 4.07% |
| 15-year fixed-rate | 3.40% | 3.37% |
| 30-year FHA | 3.96% | 3.96% |
| 30-year jumbo | 4.34% | 4.41% |
| 5/1 ARM | 2.90% | 2.91% |
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