Mortgage Applications Jump

The average rate for a 30-year fixed mortgage remained unchanged this week, coming in at 6.24%, while the national average rate for a 15-year fixed mortgage rose slightly to 5.96%. Regardless of the rates, new mortgage applications took a marked turn for the better, seeing almost a 9% increase from the previous week. New mortgage applications for buying a home rose by more than 7% from last week, and refinances saw an increase of 11%.

Analysts are mixed in their reasoning for the increase at a time of year when mortgage applications take a small turn downward. As the holidays approach, most homeowners do not make many large financial investments, such as a new mortgage. Considering that there was no drastic drop in mortgage rates, most analysts predict that the increase will be short lived. Others point out that, since rates are still moderate, homeowners may be refinancing their homes to have more cash on hand for the holidays; refinance applications accounted for almost 60% of new applications for the week.\r\n