Applications for refinancing down, purchases up as interest rates rise
Applications for home loans declined by more than 16% last week as interest rates rose, the Mortgage Bankers Assn. said in a survey today.
As expected, the drop-off occurred in people seeking to refinance their homes because the benefits of refis are driven by interest rate trends.
The trade group said the average rate for 30-year, fixed-rate mortgages jumped from 4.81% a week earlier to 5.25% -- the biggest weekly increase since October 2008. Typical points charged, including the origination fee, decreased from 1.28% to 1.02% of the loan amount for mortgages amounting to 80% or less of the property value.
The average rate for 15-year, fixed-rate mortgages increased to 4.8% from 4.44%.
Interestingly, applications to purchase homes rose more than 4%, the mortgage bankers said. If you think now is the time to buy, a rate in the low 5% range still looks pretty good.
-- E. Scott Reckard
"If you think now is the time to buy..."
...you're about to make a huge mistake. Unless you're buying something in the high desert.
Posted by: Danny | June 03, 2009 at 11:23 AM
Can anything be done about banks dragging their feet on refinancing? I applied with Wells Fargo under the help for homeowners program, this was in April and I'm still waiting. I submitted all documents requested with a week. Every time I call I'm told that it is in underwriting. I figured they were waiting for the rates to go up vs. actually giving a customer a break.
Posted by: Carrie | June 03, 2009 at 04:46 PM
DANNY wrote:
"If you think now is the time to buy..."
...you're about to make a huge mistake.
Unless you're buying something in the high desert.
Danny, if you're buying in the high desert be prepared
to see no appreciation in value for a decade.
I'd call buying a desert home under those conditions
a HUGH MISTAKE, too.
Posted by: firesale | June 03, 2009 at 08:29 PM
Carrie, are you talking about the Garden Grove house?
Posted by: Laker | June 04, 2009 at 08:01 AM
Mr. President why are the banking,and loan company not making loans as you promised they would do for the american people we are all hurting and not getting any help. Time for them to answer to you for not helping us the little people that keep them in business, maybe we should boycott their business. Check http://obamamortgage2009.blogspot.com/2009/03/obamas-mortgage-modification-do-you.html#comments
Posted by: lilliepurcell | June 17, 2009 at 10:27 PM