U.S. is witnessing a rise in the number of mortgage applications for second straight week demonstrating that it has rebounded from a four year low which was set two weeks ago. The increase in the number of applications has come after higher interest charges on mortgages.
For the current week the applications increased 1.4% on seasonally adjusted, week to week basis but are now down 25.6% from a year earlier which shows that the real estate market in the country was softening.
Just go through the figures given below in order to understand the whole scenario:
Loans for purchases decreased 0.8% from the prior week, while refinancings rose 4.6%. Loans to refinance existing mortgages accounted for 39.6% of total applications last week, up from 38% the week earlier.Adjustable-rate mortgage applications fell to 27.2% of total loans, representing the lowest share since February 2004.
The average rate for a 30-year fixed-rate mortgage rose to 6.54% from 6.45%, while the average for a 15-year fixed, a popular refinancing option, rose to 6.15% from 6.10%. The rate on a one-year ARM averaged 5.97%, up from 5.96%.
