Mortgage Applications

Mortgage Applications Rise as Rates Inch Lower

( February 22, 2006) -- The number of U.S. mortgage applications rose for the first time in a month during the week ending Feb. 17, according to the Mortgage Bankers Association.

The association's index of mortgage application activity rose 0.8 percent to 578.5 from the previous week's 574.1.

Meanwhile, the MBA’s gauge of U.S. home sales – its seasonally adjusted purchase mortgage index – increaed 4.3 percent to 408.7. The previous week the index hit at 391.7, the lowest level in more than two years.

Average borrowing costs on a 30-year fixed-rate mortgage excluding fees, declined slightly to an average of 6.22 percent last week. Fixed-rate, 15-year mortgage rates averaged 5.87. Rates on one-year adjustable-rate mortgages (ARMs) increased to 5.60 percent.

The MBA says the number of refinancing applications fell 4 percent as the difference between adjustable and fixed mortgage interest rates narrowed.

Source: Reuters News, Julie Haviv (02/22/06)