Mortgage applications, an early indicator of sales, rose last week in response to a drop in interest rates to a five-week low. For the week ending August 14, mortgage loan applications to finance the purchase of homes increased 3.9 percent, according to a weekly survey from the Mortgage Bankers Association. Compared to the same week in 2008, mortgage applications increased 25 percent. The drop in mortgage rates is credited with the increase.
Rates on a 30-year fixed-rate mortgages, rates averaged 5.15 percent, which is a decrease over the prior week's 5.38 percent. Average rates for 15-year fixed-rate mortgages were 4.52 percent, a decrease from 4.71 percent. Also, rates on one-year ARMs decreased to 6.66 percent, down from 6.71 percent.
Low mortgage rates, increased affordability, and the government's $8,000 tax credit for first-time home buyers may all help stabilize the U.S. housing market, analysts say. Sales of new homes gained 11 percent in June, the biggest jump in 8 years, and sales of existing homes rose 3.6 percent.
No comments:
Post a Comment