Mortgage Applications on the Rise

The demand for mortgages for purchase and refinancing existing mortgages rose last week, this after falling the two prior weeks in a row. The Mortgage Bankers Association stated that mortgage applications rose 2.4% in the week ended October 5th.

The trade group’s gage of home purchase applications gained 2.1 percent while the refinancing applications rose 2.7 percent. Homeowners are scrambling to refinance their adjustable rate mortgages into a more secure fixed rate mortgage. These refinance requests have represented 46.2 percent of total applications last week. Adjustable rate mortgages accounted for 13.6 percent of the total new applications submitted. Thirty year fixed rate mortgage applications increased .08 percent to 6.4 percent last week. For some reason many people are still getting shorter term loan products like one year adjustable rate mortgages that accounted for 6.15 percent of applications.

Go to CNBC to read more about the rising mortgage applications