Consumers seek fewer mortgage refinances as rates rise again
12/01/2010
By Credit.com Staff
The Refinance Index fell a seasonally adjusted 21.6 percent for the week ending November 26, according to the latest statistics from the Mortgage Bankers Association. This was the third weekly decrease in a row for refinances, which dropped the lowest level seen since June.
Meanwhile, the number of new purchase applications rose once again, climbing a seasonally adjusted 1.1 percent last week, the report said. In doing so, it reached the highest level since May. On an unadjusted basis, it declined 22.9 percent from last week as a result of the extended holiday, but was still 2.7 percent higher than during the same time last year.
Refinances made up 74.9 percent of all mortgage activity last week, down from 78.6 percent in the previous period, the report said.
Many consumers are no longer seeking refinances because mortgage rates have risen over the last several weeks after months of hovering at or near all-time record lows.
