Florida Home Loan Applications Decline in Past Week

Overall Florida mortgage applications fell in the last week, dragged down by the sinking demand for refinancing as long-term home loan rates remain at their highest levels since October.

The Mortgage Bankers Association’s mortgage application index slipped 1.7 percent to a seasonally adjusted 625.3 in the week ended June 1.

A rise in Florida home loan applications to buy single-family homes and condos was overshadowed by the drop in refinancing applications.

The seasonally adjusted purchase index rose 1.5 percent to 433.6, but the Florida mortgage refinancing gauge fell 6.1 percent to 1,757.1 in the week ending June 1.

The Florida refinancing measure has not been lower since it registered 1,640.4 late last year.

Borrowing costs on 30-year fixed-rate Florida mortgages, excluding points, rose 0.03 percent to 6.35 percent, the highest since 6.36 percent in the week of October 20.

Florida mortgage refinance activity represented 38 percent of total home loan applications, down from 39.7 percent the prior week and the lowest share of the market since July.

On a four-week moving average, which smooths out weekly volatility, all three of the seasonally adjusted Florida mortgage indexes have fallen.

The mortgage applications index, also known as the market index, is down by 2.1 percent; the purchase index is off 0.3 percent and Florida refinance index is down 4.3 percent.

SOURCE: Reuters