National, Florida Mortgage Loan Demand Sinks to Three-Year Low

Borrowers can be a finicky bunch. Last week, we reported an increase in demand for Florida home loans. This week, however? The opposite scenario faces sellers across the state and nation.

According to The Mortgage Bankers Association, U.S. mortgage applications have fallen for the first time in four weeks. Moreover, demand for home purchase loans dropped to the lowest level in nearly three years. Individuals appear content to delay any requests for a Florida home mortgage until the market settles in their favor even more.

The trade group said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, for the week ending August 25 decreased 0.9 percent to 556.5, from the previous week’s 561.5.

Florida mortgage rate report

Borrowing costs on 30-year fixed-rate Florida mortgages, excluding fees, averaged 6.39 percent, up 0.01 percentage point from the previous week when they sank to their lowest since March.

Interest rates, meanwhile, were above year-ago levels of 5.73 percent, but below a four-year high of 6.86 percent felt in June.

Fixed 15-year mortgage Florida home mortgage rates averaged 6.06 percent, up from 6.04 the previous week. Rates on one-year adjustable-rate mortgages (ARMs) increased to 5.97 percent from 5.91. The ARM share of activity increased to 26.8 percent of total applications from 26.4 percent the previous week.

The MBA’s survey covers about 50 percent of all U.S. retail residential mortgage loans. It’s helpful for brokers to get an idea of what the market looks like and to gauge their activity accordingly.