Again, Florida Mortgage Loan Applications Sink to 5-Month Low

The volume of Florida mortgage applications slid last week to their weakest level in more than five months, an industry group said Wednesday.

Demand for Florida mortgages to buy homes continued to erode amid escalating credit concerns and tighter underwriting standards.

The Mortgage Bankers Association said that in its seasonally adjusted index of mortgage applications, demand dipped 0.3 percent in the week ending July 27 to 607.1.

That level is just above the 606.6 reading in the February 16 week.

The home purchase loan index fell by 1.8 percent to a seasonally adjusted 416.6 last week.

The last time this gauge of Florida home loan demand was lower was in the week ending April 20, when it dropped to 411.0.

Average 30-year Florida mortgage costs, excluding fees, fell 0.09 percent in the past week to 6.50 percent, helping drive up loan requests for mortgage refinancing.

The Florida refinance index rose 1.8 percent to a seasonally adjusted 1,724.1, according to the weekly survey.

Long-term (30-year) fixed-rate borrowing costs have not strayed much during the summer after mortgage rates rose from the 6-6.25 percent range seen during the first four months of the year to around 6.75 for a time.

SOURCE: Reuters