Long-Term Rates Remain Low; Mortgage Activity Lightened
Mortgage News from Quicken Loans
Mortgage activity dipped last week following the previous week's surge, according to the latest Weekly Mortgage Applications survey from The Mortgage Bankers Association (MBA).
For the week ending December 15, the MBA's survey showed that the weekly Market Composite Index, which measures mortgage loan application volume, decreased by 10.2 percent overall from the previous week. Refinance applications decreased by 14.6 percent, while purchase applications fell by 5.9 percent.
Bob Walters, chief economist of Quicken Loans, says continued low long-term interest rates will spur the market in the new year.
"With the holiday season upon us, it comes as no surprise that mortgage activity lightened last week," said Walters. "However, for consumers looking to purchase a home or refinance their current mortgage, now is an ideal time as long-term interest rates remain at their lowest levels for the year. Low rates, paired with a buyer's real estate market, has made housing very affordable and we should see purchase applications increase in the near future."
This article is reprinted by permission from Quicken Loans © 2006 Quicken Loans Inc. All rights reserved.
