Mixed mortgage news hits home

06.18.09
By Nicholas Storie

Recovery in the housing market and finding viable solutions to curb the rising foreclosure rates are top concerns among policy makers in Washington, including the Federal Reserve.

Efforts have been made to keep the mortgage rates down hoping to encourage families to consider buying a home and to give current homeowners the opportunity to refinance their mortgage loans.

But recent swings and mixed news in the housing market have many wondering when the best time to buy is and at what rate?

According Zillow.com's latest weekly update, 30-year fixed mortgages increased last week to 5.72 percent - up from 5.48 percent the week prior. This 4.4 percent increase could make a big difference to homeowners weighing the costs of financing a property purchase.

Another factor for consumers to consider during the home-buying process is the geographic location of your potential new home.

Zillow.com reports that Arizona, California, Colorado and Connecticut had the highest average mortgage rates around the country. But, Pennsylvania and New Jersey were among the states that showed the biggest percentage increase in rates from one week to the next.

However, before making a quick decision consumers should check the most up-to-date rates. By the time the Zillow results were released the average 30-year rate had dropped.

This news came just days before the Mortgage Bankers Association said that home loan application volume decreased by almost 16 percent on a seasonally adjusted basis from one week earlier.

The level of loan application volume was nearly flat compared to the same time last year.

Fewer homeowners are looking to refinance their existing home loans. The MBA reported that the refinance share of mortgage activity dropped to 54.1 percent of total applications. It stood at 59.4 percent one week earlier.

More Housing Market Articles | News Home | Discuss in our Forum

Mortgage application volume falls in last week