Applications for Florida Mortgage Loans, Refinancing Increase Slightly During Week

Applications for new Florida mortgages increased 0.6 percent last week on higher demand for loans to buy a home, an industry trade group reports.

The Mortgage Bankers Association reported Wednesday morning that the total number of applications filled out - including both home purchase loans and Florida mortgage refinancing - was up about 9 percent.

That’s compared with the same week a year ago.

The data used in this report does not indicate how many of the applications were actually accepted. Florida mortgage lenders have been quickly tightening their underwriting standards for loans in recent weeks.

This is especially true in regards to “problem” home loans.

In response to the escalating bad credit Florida mortgage crisis, in which problems in both the subprime and alt-A home loan sectors have fueled a foreclosure boom and panic among investors, providers have buckled down on who gets funding.

OTHER IMPORTANT FIGURES RELEASED WEDNESDAY …

• The number of applications filed to refinance an existing Florida mortgage decreased 3.2 percent last week.
• The volume of Florida home loan applications to buy a property increased 4 percent compared with the previous week.
• The average mortgage rates for a 30-year fixed-rate loan rose last week to 6.14 percent, up very slightly from 6.13 percent.
• The rate for a 15-year fixed loan - a popular Florida home loan refinancing option - rose to an average of 5.83 percent from 5.82 percent.
• Average rates for one-year adjustable-rate mortgages were unchanged at 5.79 percent.
• ARMs accounted for 17.9 percent of total applications, a four-year low.

SOURCE: MarketWatch