Florida Home Loan Applications Decline, Mortgage Rates Inch Higher For Week

U.S. mortgage applications fell for the first time in three weeks, reports ABC News, amid a rise in interest rates that has contributed to consumers’ hesitation to take out Florida home loans.

In its seasonally adjusted index of mortgage application activity for the week, the Mortgage Bankers Association reported a decrease of 5.5 percent to 579.4, down from the previous week’s 612.8. Florida home loan rates, meanwhile, edged up slightly for the week. The average 30-year fixed-rate mortgage, excluding fees, averaged 6.50 percent, up 0.01 percent from the previous week. It is highest level since Florida home loans reached 6.53 percent on June 14, 2002.

The 30-year fixed-rate Florida home loan, is considered the industry benchmark as it is the most popular option. Mortgage rates have risen sharply since last year’s low of 5.47 percent in late June 2005.

The MBA’s seasonally-adjusted purchase mortgage index fell 4.7 percent to 417.7, down from the previous week’s 438.2. The index is considered a timely gauge of U.S. home sales, and has fallen considerably from its level of 474.5 a year ago. The group’s index of Florida home loan refinance activity decreased by 6.6 percent to 1,532.4, a drop from 1,640.8 the previous week. A year ago this week, the index stood at 1,899.6.

Refinancing comprised 36.0 percent of total mortgage applications, a drop of 0.6 from a week ago. It was the lowest refinance share since July 30, 2004, when it reached 35.8 percent.

While historically low Florida home loan rates have fueled a five-year boom, analysts differ on whether there is a bubble. Most agree, however, that the state’s housing market is cooling off from its record run. Fixed 15-year mortgage rates averaged 6.17 percent, up from 6.15 percent a week ago. Rates on one-year adjustable-rate mortgages jumped to 5.97 percent from 5.96 percent. If a Florida home loan is in your future, be sure you monitor changing market conditions and follow our advice!