Florida Home Loan Application Activity Rises For Second Straight Week

Driven by increased demand for Florida home loans as rates remain near a four-year high and look poised to edge higher still, mortgage application activity rose for the second consecutive week, according to USA Today.

In its seasonally-adjusted index of mortgage application activity for the week ending July 7, the Mortgage Bankers Association reported an increase of 1.0 percent, to 566.8, from the previous week. The group’s seasonally adjusted purchase mortgage index, considered a timely gauge of U.S. home sales, rose 2.6 percent to 425.0, but stands well below the 489.0 mark attained a year ago.

The group’s seasonally adjusted index of refinancing applications decreased 1.6 percent to 1,400.5. A year earlier the index was at 2,554.3. The share of refinance applications fell to 34.0 percent overall, from 35.0 percent.

Historically low Florida mortgage rates have fueled a five-year housing boom, helping support the state’s economy and making the Sunshine State one of the nation’s fastest growing. As mortgage rates continue to inch higher and prices begin to level off, most analysts agree the market is cooling, and some worry that there may be a significant housing bubble, and the potential for damaging fallout to the state economy. Stay tuned to see if rates increase this week and how that impacts demand.