Mortgage Applications Rise in Last Week

The number of applications filed to take out a home loan from a major U.S. bank rose by 3.2 percent on a seasonally adjusted, week-to-week basis, the Mortgage Bankers Association reported Wednesday.

Application volumes in the week ended Feb. 23 were up 8.8 percent compared with the same week a year ago.

U.S. mortgage applications have now risen every other week for the past six weeks, coinciding with a period of intense scrutiny of conditions in the nation’s housing market.

The number of home purchase loan applications rose 5.2 percent last week, the first week-to-week increase in four weeks. Purchase applications were flat compared with the same week a year ago, the MBA’s data showed.

At the same time, mortgage refinance applications also rose, up 1.2 percent from the week ending February 16 and up about 23 percent compared with last year. Refinancings accounted for 43.2 percent of loan applications, the lowest share seen since September.

U.S. banks have tightened their lending standards amid increased bad credit mortgage scrutiny. It’s possible that mortgage approvals could be flat or falling even with an increase in applications coming in the door.

Meanwhile, mortgage rates as tracked by the MBA were mixed last week.

The average rate for 30-year fixed-rate loans dropped to 6.16 percent from the prior week’s 6.19 percent, marking the lowest rate in seven weeks. The average rate for 15-year fixed-rate mortgages fell to 5.84 percent, the lowest in nine weeks, from 5.88 percent.

The rate for one-year adjustable-rate mortgages averaged 5.92 percent, up from 5.81 percent, in moving to the highest level seen in 17 weeks.

SOURCE: MarketWatch