Florida Home Mortgage Applications Fall Again

Florida mortgage applications fell for the fifth consecutive week, which  reflects a drop in demand for home purchase loans across the Sunshine State as well as for home loan refinancing.

The Mortgage Bankers Association said that its seasonally adjusted mortgage application activity index declined by 2.5 percent for the week ending April 13.

The four-week moving average of Florida mortgage applications, less volatile than the weekly figures, declined by 1.6 percent.

Borrowing costs on 30-year fixed-rate Florida mortgage products, excluding fees, came in at 6.22 percent, up 0.06 percent from the previous week, its highest since early February.

At the same time, Florida mortgage rates were significantly below their year-ago levels of 6.56 percent.

Weighing on the housing market is an excess supply of homes for sale, as well as the current issues in the bad credit mortgage market, which has driven lenders to tighten underwriting standards.

The purchase index, considered a timely gauge of home sales, dropped 4.2 percent to 396.5, its first drop below the 400 threshold since the middle of February. The index was below its year-ago level of 407.4.

Meanwhile, the group’s index of Florida mortgage refinance applications decreased 0.3 percent. The mortgage refinancing share of applications increased to 43.6 percent from 42.8 percent the previous week.

Fixed 15-year mortgage rates averaged 5.92 percent, up from 5.91 percent. Rates on one-year adjustable-rate mortgages (ARMs) increased to 5.89 percent from 5.88 percent.

Lastly, the ARM share of overall Florida home loan activity fell to 18.1 percent from 18.7 percent for the week, as fixed-rate options gained popularity.

SOURCE: Reuters