Mortgage applications decline again this week
12/15/2010
By Credit.com Staff
The number of new home loans consumers applied for dropped once again in the week ending December 10, according to the latest statistics from the Mortgage Bankers Association. The overall Market Index fell a seasonally adjusted 2.3 percent, while the unadjusted decline was 2.7 percent.
The drop was largely the result of heavy declines in the number of new purchases, as that market fell a seasonally adjusted 5 percent, and 8.6 percent unadjusted, the report said. Refinances experienced a much shorter drop of just 0.7 percent.
"Treasury rates increased last week following news that lower tax rates could be extended for another two years, boosting growth prospects," said Michael Fratantoni, MBA's vice president of research and economics. "With this move, mortgage rates reached their highest level in more than six months."
Rates had already been increasing for a number of weeks prior to the latest period. This has caused customers to shy away from refinances, which they actively sought when rates were hovering at or near all-time lows in the fall.
