Low Fixed Rates Conducive to Housing and Refinancing
Mortgage News from Quicken Loans
The number of consumers applying to purchase a home remained steady while refinance applications decreased in the week ending June 16, according to the Mortgage Bankers Association (MBA).
Today the MBA reported that overall mortgage application activity decreased 0.8 percent from the previous week. Broken down, that figure reflects that the seasonally adjusted purchase mortgage index rose 0.1, while the seasonally adjusted index of refinancing applications decreased 2.2 percent.
"Long-term interest rates have been in a range for three solid months that is still conducive to a robust housing market. If the economy keeps flexing its muscle by adding jobs, consumers' demand for housing will be there," said Bob Walters, chief economist of Quicken Loans. "At the same time, the stability of long-term rates has provided a soft landing for people who are refinancing out of adjustable rate mortgages, which are tied to the more volatile and steadily rising short-term rates."
This article is reprinted by permission from Quicken Loans © 2006 Quicken Loans Inc. All rights reserved.
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