Fixed Rates and Consolidations to be Expected

For the week ending January 13, mortgage applications were up 2.2 percent over the previous seven days, according to today’s survey results reported by the Mortgage Bankers Association. Although purchase applications fell off 3.0 percent from a week prior, the overall increase in volume was fueled by a 9.9 percent increase in the Refinance Index.

“Long-term rates have been falling since November. This has provided homeowners the opportunity to refinance into the safety of fixed, long-term rates without any appreciable change in their mortgage payment,” says Bob Walters, Chief Economist of Quicken Loans.

He also added that this trend in refinancing should include individuals who have accumulated holiday credit card bills and are using their home equity to consolidate this debt.