Rates Fall, Mortgage Applications Rise

\r\nThough the amount of loan applications are only about 75% of what they were a year ago, for the sixth straight week applications are on the rise. Current fixed rate mortgages are at a six month low, and look to be stabilizing or even decreasing a little more in the near future. In a move that has many analysts rethinking the real estate market, purchases are at a seven-week high, increasing by almost 4% this week; refinances fell by almost 1%.\r\n

As rates for fixed mortgages decline, adjustable rate mortgages are at a three-year low, accounting for only 26% of applications taken. Many homeowners have seen the affects of ballooning ARM payments, and have turned to fixed mortgages in the past few months. As a whole, mortgage professionals and associations are feeling the increase in business, while real estate professionals are seeing a small return of business. Market analysts agree that the changing market may be the turning point for the market that has been a roller coaster over the last 18 months.\r\n