Second Week of Rising Mortgage Applications

For the second week in a row, mortgage applications are on the rise amid record high rates. The one percent increase may not sound like a lot, but when fixed rate mortgages are averaging a rate of 6.81%, any increase is a reason for hope. Analyst still forecast that the mortgage market is in a cooling trend, pointing out that mortgage rates are still on the rise. The current increase marks the 18th straight rise in rates, unprecedented since the mid-80s.

Mortgage professionals may be happy at the news in regards to applications, but the MBA shows that the mortgage index is down by 60 points from the same time last year. The index is considered a timely gauge of US home sales and currently has been on a constant decrease when compared with 2005’s figures. Home sales may be up, but for the fourth straight week refinances are dropping. An industry staple for many companies, refinances are looked to in times of market slowing to maintain business.