Florida Mortgage, Refinancing Applications Decline For Third Consecutive Week

Florida home loan applications for both home purchases and refinancing fell last week when mortgage rates increased, the Mortgage Bankers Association (MBA) said Wednesday.

In its seasonally adjusted index of home mortgage applications, the MBA said volume declined for third straight week, falling by 3.2 percent to 649.5 in the week ending March 30.

The purchase index declined 2.0 percent to 402.9, while Florida mortgage refinancing applications fell 4.5 percent in the past seven days.

Borrowing costs rose for all home loan products, most notably the 30-year fixed-rate mortgage, the industry’s benchmark loan.

The 30-year, fixed rate Florida mortgage rose 0.09 percent from the prior week to 6.13 percent, its highest since 6.16 percent February 23.

The week’s slide in mortgage applications dragged all indexes down on a four-week moving average, which smooths out weekly volatility.

Where is the market headed? Reports over the past few week on home sales and home prices have painted a mixed picture for economists.

However, long-term Florida mortgage rates remain relatively low, which should bolster mortgage loan applications across the board.

Average 30-year home loan rates were close to 6.50 percent a year ago.

However, stricter Florida mortgage lender standards instituted to stave off late payments and foreclosures, especially among people with poor credit, likely will stall the recovery in the housing mark, most analysts feel.

SOURCE: Reuters