Friday, October 12, 2007

Loan Demand Rises - 5/1 ARM Dips

Demand for loan applications to purchase homes and refinance existing mortgages rose last week. In the week ending October 5, the seasonally adjusted index of home loan application activity increased 2.4% to 652.0, according to the Mortgage Bankers Association. Refinancing requests accounted for 46.2% of total applications last week, up slightly from 46.0% and adjustable-rate mortgages accounted for 13.6% of the total, down from 13.8%.

30 Yr Fix 6.37% 0.03%
15 Yr Fix 6.03% 0.05%
1 Yr ARM 5.58% -0.07%
5/1 ARM 6.11% -0.10%
30 Yr Tres 4.87% 0.10%
Fed Prime 7.75% -0.50%

Refinancing as a share of all mortgage activity increased to 46.2 percent from 46.0 percent the previous week while the ARM share continues to drop, representing only 13.6 of all applications compared to 13.8 percent one week earlier.