Fixed Rates Stay Low, Mortgage Applications Rise

After a shortened holiday week that ended on December 2, mortgage applications shot up, according to a report issued today by the Mortgage Bankers Association (MBA). Based on the MBA’s Weekly Mortgage Applications Survey, mortgage loan application volume increased 5.2% over the previous week. What were the reasons for this raise?

“The economy remains strong, creating almost a quarter million jobs in October,” says Bob Walters, Chief Economist of Quicken Loans, the nation’s largest online lender. “Long-term rates are still historically low and, combined with robust job growth, should continue to fuel the housing market going into 2006.”

Both purchases and refinances showed an impressive amount of activity, as well, with the Purchase Index increasing by 4.0% and the Refinance Index escalating 7.0% over one week earlier.

“Next week, the Fed is expected to raise the Fed Funds rate for the 13th time and short-term rates are continuing to rise as a result of the Fed’s actions. Homeowners in adjustable rate mortgages have seen the writing on the wall and are actively refinancing into long-term programs,” says Walters.

This has been well-documented in articles throughout this site. We’ve attempted to let those with adjustable Florida home loans know that now may be a good time to look into lower, fixed rates.