Lower interest rates send mortgage applications upward
January 25th, 2008, 1:32 pm · Post a Comment · posted by mistywilliams
More potential homebuyers are taking out mortgage applications, according to the Mortgage Bankers Association.
Refinance applications have jumped 92 percent since the beginning of November and purchase applications are up 7 percent, the report shows.
“With tighter credit conditions, we do not know how many of these applications will become loans,” but it’s clear that borrowers are responding to recent interest rate drops, said Jay Brinkmann, vice president of research and economics for the association.
The average contract interest rate for a 30-year fixed-rate mortgage fell to 5.49 percent from 5.62 percent the previous week.
