Mortgage Interest Rates Hold Steady-Loan Applications Jump Over 20 Percent

Home Loan Applications Jump 21.0 Percent Last Week.

Dennis Norman

The Mortgage Bankers Association (MBA) released its weekly mortgage applications survey for the week ending January 29, 2010. The report showed the MBA Purchase Index (a measure of the volume of loan applications related to a home purchase) increased 21.0 percent from the week before and the four-week moving average for the index is up 7.6 percent.

Homeowners taking advantage of near record-low interest rates and refinancing their existing mortgages continue to dominate the mortgage application activity this week, with refinances making up 69.2 percent of loan applications for the week. ARM’s continue to be unpopular among borrowers and only make up 4.5 percent of new mortgage loans.

Interest rates and fees for the week:

• 30 year fixed-rate mortgage interest rates decreased slightly to 5.01 percent from 5.02 percent the previous week, with fees increasing to 1.04 percent from 1.00 percent on loans that are 80 percent of the value of the home.
• 15 year fixed rate mortgage interest rates decreased to 4.33 percent from 4.34 the previous week, with fees increasing to 1.17 percent from 1.14 percent on loans that are 80 percent of the value of the home.
• One-year ARM interest rates decreased to 6.7 percent from 6.84 percent with fees increasing to 0.34 percent from 0.33 percent for loans that are 80 percent of the value of the home.

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