Mortgage Applications Rise as Rates Stay Low

Applications to purchase homes rose 3.4 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, the purchase index rose 15.3 percent compared with the previous week, but was down 35.7 percent compared to the same week a year ago.

This is only the second time in 10 weeks that purchase mortgage applications have increased.

“The strength in purchase applications comes from government loans, likely indicating that prospective buyers are drawn by the lower down payment requirements,” says Michael Fratantoni, MBA’s vice president of research and economics.

Mortgage rates remained low:

• 30-year fixed-rate mortgages decreased to 4.59 percent from 4.69 percent.
• 15-year fixed-rate mortgages decreased to 4.05 percent from 4.12 percent.
• 1-year ARMs decreased to 7.17 percent from 7.20 percent.

Source: Mortgage Bankers Association (07/21/2010)