Florida Mortgage Applications Jump 7.3 Percent

With interest rates continuing to tumble, the number of home mortgage applications as tracked by the Mortgage Bankers Association in the past seven days rose by 7.3 percent on a seasonally adjusted basis compared to the prior week.

This marked the highest level of activity in two months in terms of people seeking Florida home loans.

Application volumes in the week ended March 2 were up about 16 percent in comparison with the same week a year ago. The number of applications for Florida mortgages to buy homes rose by 1 percent on a week-to-week basis and by about 2 percent compared to a year ago.

Across the state, home purchase loan activity had been relatively flat for six weeks, data from various surveys indicates.

Meanwhile, applications for loans to refinance a Florida mortgage jumped 15 percent from the week ended February 23 to the highest level seen in 12 weeks. Refinancings were up about 38 percent compared to last year.

Overall, mortgage refinancing accounted for 46.1 percent of total mortgage applications in the last week, recovering after falling to a five-month low level of 43.2 percent the week before.

The index covers about half of Florida mortgage applications completed in the past week. The bankers surveyed in this market sample typically cater to more qualified borrowers.

Banks have tightened their lending standards, rejecting more loans of late. It’s possible that total Florida mortgage approvals could be flat or falling as of now despite the increase in applications coming in the door.

Weekly Florida mortgage rates, as tracked by the MBA, fell sharply.

The average rate for 30-year fixed-rate mortgages dropped to 6.04 percent, the lowest rate in 11 weeks, from the prior week’s 6.16 percent.

The rate for 15-year fixed-rate loans averaged 5.73 percent, the lowest in 13 weeks, down from 5.84 percent.

Average mortgage rates for one-year adjustable-rate mortgages averaged 5.79 percent, an eight-week low, down from a 17-week high of 5.92 percent seen the week before. ARMs accounted for 21.4 percent of loan applications, up slightly from 21.1 percent.