Florida Mortgage Applications Fall to Five-Month Low

Mortgage applications declined for the first time in a month, and hit a five-month low, reflecting a sharp drop in Florida home loan demand.

A seasonally adjusted index of Florida mortgage applications, considered to be a timely gauge of home sales, for the week ending July 20 decreased 3.6 percent to 609.0.

This past week marked the lowest level for Florida mortgage applications  since the week ending February 16. The four-week moving average of home loan applications, which evens out volatile weekly figures, is down 0.4 percent.

Borrowing costs on 30-year fixed-rate Florida mortgages, excluding fees, averaged 6.59 percent, down 0.02 percent from a week ago.

Florida mortgage rates were also below year-ago levels, finishing the week at 6.69 percent.

As mortgage rates fell slightly, the MBAA’s seasonally adjusted index of home mortgage refinancing applications also decreased, by 1.4 percent to 1,692.9.

The Florida refinance share of applications increased to 38.5 percent from 37.7 percent the previous week.

Fixed 15-year mortgage rates, always a popular option for Florida mortgage refinancing, averaged 6.24 percent, down from 6.29 percent.

Rates on one-year adjustable-rate mortgages (ARMs) jumped to 5.62 percent from 5.60 percent, while the ARM share of all Florida mortgages was 21.0 percent, unchanged from the previous week.

Housing market industry indexes tend to be volatile, but recent data are starting suggest a delayed recovery for the hard-hit sector.

Across the Sunshine State, sales have slowed and prices continue to creep downward. The only question is where it stops.

SOURCE: Reuters