Mortgage Applications Rise, Thanks to Low Interest Rates

Demand for mortgage loans rose last week, driven by low interest rates.

The Mortgage Bankers Association said its Market Composite Index rose 5.8% on a seasonally adjusted basis from a week earlier. The index measures the volume of applications for loans. Demand for loans for new homes gained 5.5%, while the number of applications for loans to refinance rose 6%.

"The increases in purchase applications we have seen over the past couple of weeks align with the better-than-expected news from October's employment report and other data indicating some improvement in the economy's growth prospects," said Michael Fratantoni, MBA's vice president of research and economics. "Refinance applications increased as rates continued to hover near record lows."

The average contract interest rate for 30-year fixed-rate mortgages was 4.28%. The average for 15-year fixed-rate mortgages was 3.64%.

Increase your money and finance knowledge from home

Intro to Retirement

Get started early planning for your long term future.

View Course »

Goal Setting

Want to succeed? Then you need goals!

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

The amount of cash you can get depends on your age, the type of reverse mortgage you select, the appraised value of your home, current interest rates, and where you live. In general, the most cash goes to the oldest borrowers living in the homes of greatest value at a time when interest rates are low. On the other hand, the least cash generally goes to the youngest borrowers living in the homes of lowest value at a time when interest rates are high.

July 21 2013 at 2:53 PM Report abuse rate up rate down Reply