Daily Real Estate News  |  September 5, 2008

Mortgage Volume Up 7.5%, Rates Down

The Mortgage Bankers Association reports a 7.5-percent increase in home loan demand during the week ended Aug. 29.

The index indicates a 10.5-percent jump in purchase applications and a more modest 2.1-percent rise in refinancing requests.

Additionally, the group's index tracking mortgages backed by the FHA surged 19.9 percent. Refi demand accounted for 34 percent of all application volume and adjustable-rate loans accounted for 6.6 percent--versus 35.2 percent and 7.9 percent, respectively, the prior week.

The report also shows a drop in the 30-year fixed mortgage rate to 6.39 percent from 6.44 percent and a decrease in the one-year adjustable mortgage rate to 7.11 percent from 7.15 percent, while the 15-year fixed rate edged up to 5.96 percent from 5.94 percent.

Source: MarketWatch, Amy Hoak (09/03/08)