Florida Mortgage Applications Now On the Rise

The number of applications filed to take out a Florida home loan from a Sunshine State lender rose by 3.2 percent on a seasonally adjusted, week-to-week basis, new data from the Mortgage Bankers Association suggests.

Application volumes in the week ending February 23 were up by 8.8 percent compared with the same week a year ago. Florida mortgage applications have now risen every other week for the past six weeks.

The recent fluctuations in rates is believed to coincide with a period of intense scrutiny of conditions in the Florida housing market, as high South Florida home prices and costs throughout the state continue to deter buyers.

The number of applications for loans for people looking to purchase a home rose 5.2 percent last week, the first week-to-week increase in four weeks. Home purchase loan applications were flat compared with the same week a year ago.

Applications for loans meant for Florida mortgage refinancing also rose, up 1.2 percent from the week ended February 16 and up about 23 percent from a year ago. Refinancing accounted for 43.2 percent of Florida home loans, the lowest share seen since September.

Statewide, lenders have tightened their credit standards as more Florida mortgage borrowers experience trouble, with subprime loans in particular. It’s possible that mortgage approvals could be flat or even fall, despite the increase in applications coming in the door.
Florida mortgage rates were mixed last week.

The average rate for 30-year fixed-rate Florida mortgage loans dropped to 6.16 percent from the prior week’s 6.19 percent, marking the lowest rates seen in over seven weeks.

The average rate for 15-year fixed-rate loans, a popular mortgage refinance option, fell to 5.84 percent, the lowest in nine weeks. Last week, the 15-year mortgage rates averaged a slightly higher 5.88 percent.

As mortgage applications rose, the average rates for one-year adjustable-rate home loans, meanwhile, came in at 5.92 percent, up from 5.81 percent, in moving to their highest levels seen in 17 weeks.