Mortgage Bankers Association: Applications for mortgages to purchase homes declined 5% last week compared to the previous week on a seasonally adjusted basis. On an unadjusted basis, the index declined 8.6% compared with the previous week and was down 16.6% compared to the same week a year ago.
Mortgage rates rose last week to the highest level in six months discouraging some potential home buyers, says Michael Fratantoni, vice president of research and economics for MBA, according to Realtor Mag. But home purchase applications were still about equal to those seen in early May before the tax credits expired.
The rate for 30-year fixed-rate mortgages increased to 4.84 percent from 4.66 percent, while 15-year fixed-rate mortgages increased to 4.21 percent from 3.98 percent. The decline in applications for purchase is much larger than the refinance applications, which fell only 0.7%.
The YoY decline in purchase applications is especially significant because it is coming from a weak comparison. Last year purchase applications were down sharply due to the end of the first time home buyers tax credit program. Read more…..