Florida Mortgage Applications Decline For Fourth Consecutive Week

Applications for Florida mortgages again fell last week as interest rates rose, the Mortgage Bankers Association reported Wednesday.

The number of applications filed at major mortgage lenders dropped for a fourth straight week, as adjustable-rate Florida home loans fell to their lowest share of applications in nearly four years.

The total number of applications filed - including both home purchase loan and refinancing loans - was 0.4 percent lower on a week-to-week basis, but they were up about 11 percent compared with the same week a year ago.

The data does not indicate how many of the completeed home purchase or Florida mortgage refinance applications were accepted.

The number of applications filed to refinance an existing Florida mortgage dropped 4 percent last week. Home loan refinancing applications, up about 32 percent compared with the same week a year ago, accounted for 43 percent of total applications, the smallest proportion in six months.

No data was available on what percentage of this week’s loans were originated by a Florida mortgage broker.

Regardless, the aggregate volume of home loan applications to buy a property rose 2.7 percent compared with the previous week, but purchase loans were down about 1 percent in comparison with a year ago.

By comparison, home sales are down 5.5 percent from the same time last year. Meanwhile, Florida home loan rates rose last week.

The average rate for a 30-year fixed-rate loan increased to 6.16 percent from 6.13 percent, the highest in six weeks. The rate for a 15-year fixed loan - a popular Florida mortgage refinancing option - rose to an average of 5.91 percent, the highest in eight weeks, up from 5.85 percent.

Average rates for one-year ARMs nosed up to 5.88 percent from 5.87 percent on a week-to-week basis. ARMs accounted for just 19 percent of last week’s mortgage applications, the smallest share since July 2003.

SOURCE: MarketWatch