Mortgage Applications Are Up Sharply

From Realtor Magazine Online, Daily Real Estate News September 10, 2008

The number of mortgage applications rose 9.5 percent on a seasonally adjusted basis, pushing the Mortgage Bankers Association mortgage index to 496.2, compared with 453.1 the previous week.

This week’s results were also adjusted for the Labor Day holiday. On an unadjusted basis, the index decreased 13.6 percent compared with the previous week and was down 24.4 percent compared with the same Labor Day week a year earlier.

The number of refinance loans rose 15.4 percent and purchase loans rose 6.4 percent. Both would have seen declines if the numbers weren’t adjusted to reflect the Labor Day holiday.

Mortgage rates were down on rumors of an impending federal government takeover of Fannie Mae and Freddie Mac. Since the announcement Sunday, they have declined more:

* 30-year fixed-rate mortgages decreased to 6.06 percent from 6.39 percent;
* 15-year fixed-rate mortgages decreased to 5.73 percent from 5.96 percent
* 1-year ARMs decreased to 7.00 percent from 7.11 percent.

Source: Mortgage Bankers Association (09/10/2008)