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Wednesday, October 31, 2007

Lower Rates Drive Jump in Mortgage Applications

Daily Real Estate News October 31, 2007

Mortgage applications were up in response to the lowest 30-year mortgage rates since early May, according the Mortgage Bankers Association’s weekly mortgage applications survey, released Wednesday. The mortgage applications index rose by a seasonally adjusted 3.8 percent to 681.7 for the week ending Oct. 26. On an unadjusted basis, the index increased 3.6 percent compared with the previous week and was up 19.5 percent compared with the same week one year earlier. The refinance index jumped 9.2 percent to a seasonally adjusted 2,249 last week, rising to 49.6 percent of total mortgage activity. Mortgage rates were down in all categories:
  • 30-year fixed-rate mortgages decreased to 6.15 percent from 6.21 percent.
  • 15-year fixed-rate mortgages dropped to 5.79 from 5.86 percent.
  • 1-year ARMs decreased to 5.93 from 6.1 percent.

Source: Reuters News and the Mortgage Bankers Association (10/31/07)

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