Florida Mortgage Applications Decline For Week

Mortgage applications fell throughout the state last week, weighed down by a plunge in demand for Florida mortgage refinancing as home loan rates reached seven-month highs.

The Mortgage Bankers Association said its seasonally adjusted index of Florida mortgage applications for the week ending May 25 dropped by 7.3 percent to 636.4.

Borrowing costs on 30-year fixed-rate Florida mortgage loans, excluding fees, averaged 6.32 percent, up 0.09 percent from the previous week and its highest since October 20, when it stood at 6.36 percent.

Florida mortgage interest rates, however, were still well below year-ago levels of 6.66 percent.

The index of Florida refinance applications, meanwhile, dropped 13.0 percent to 1,874.6, the index’s lowest point since January, when it touched 1,848.8.

The refinance share of overall Florida mortgage activity decreased to 39.7 percent of total home loan applications from 42.3 percent recorded in the previous week.

The average contract rate for 15-year Florida mortgages, a popular refinancing option, also increased, rising to 6.05 percent from 5.96 percent.

Statewide activity regarding adjustable-rate mortgages decreased to 17.7 percent of total applications from 18.1 percent the previous week.

The MBA’s seasonally adjusted purchase index fell 2.5 percent to 427.0. The index, however, was above its year-ago level of 395.5. The purchase index is considered a timely gauge of home sales.

SOURCE: Reuters