This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Mortgage Applications Rise as Rates Fall

WASHINGTON ( TheStreet) -- Mortgage applications rose 4.1% last week as market volatility sent mortgage rates lower and homeowners looked to refinance.

Mortgage loan application volume increased 4.1% on a seasonally adjusted basis for the week ended Aug. 12 from the prior week, the Mortgage Bankers Association said Wednesday.

The refinance index jumped 8% week over week as loan rates fell, but remained 16.3% lower year over year.


The seasonally adjusted purchase index dropped 9.1% from the prior week as potential homebuyers were cautious to make big purchases amid economic uncertainty.

"Unprecedented volatility in the stock market last week amid additional signs that the economy has slowed led to further drops in mortgage rates, with the 15-year rate reaching a new low for the MBA survey," said Mike Fratantoni, MBA's vice president of research and economics. "Purchase application activity fell sharply over the previous week, likely the result of potential homebuyers hesitant to purchase in this highly volatile and uncertain environment."


A total of 78.8% of all loan applications last week were for refinancing existing mortgages, up from 75.6% in the prior week. It was the highest the refinance share has been since November 2010 as existing homeowners looked to take advantage of lower mortgage rates.

The average rate on a 30-year fixed mortgage decreased to 4.32% last week, down from 4.37% in the prior week. The 30-year fixed contract rate has decreased for three straight weeks and is at a new low for this year, the MBA said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
XHB $36.22 0.78%
BZH $18.36 -0.38%
DHI $26.37 0.38%
HOV $3.20 0.95%
LEN $47.18 -0.46%

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs