Weekly Mortgage Applications Rise On Dip In Rates
Author: Rob K. Blake | Date: September 10, 2008 | Filed In: Mortgage Rates
The government bailout of Fannie and Freddie this week sent mortgage rates dumpling which triggered an increase in mortgage applications according to the Mortgage Bankers Association report.
Mortgage Rates Drop -Mortgage Applications Rise
As expected, the recent drop in mortgage rates has spurred an increase in mortgage applications. The Market Composite Index, created by the MBA to measure this, showed for the week ending September 5, 2008 an increase from 453.1 to 496.2 on a seasonally and holiday-adjusted basis. Purchase application rose from 349.0 to 371.5, while the Refinance application jumped from 1059.7 to 1222.9.
The Mortgage Bankers Association reported a drop in mortgage rates,
“The average contract interest rate for 30-year fixed-rate mortgages fell from 6.39% to 6.06%, and points (including the origination fee) increased from 1.00 to 1.02 for loans with 80% loan-to-value ratios.”
That’s a pretty significant drop considering the government has yet to really “do” anything…except make the GSE takeover announcement.
In this market, I’ll take any good news I can get…
Good Luck!
Author: Rob K. Blake
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