Daily Real Estate News  |  January 30, 2008  |   Fed Rate Cut Spurs Mortgage Applications
Mortgage applications rose another 7.5 percent last week on a seasonally adjusted basis, compared to the previous week, according to the Mortgage Bankers Association’s weekly mortgage applications survey.

On an unadjusted basis, the index increased 10.5 percent compared with the previous week and was up 70.7 percent compared with the same week a year ago.

The increase reflected a rush to refinance even though rates were up slightly from the previous week when the Federal Reserve responded to recession fears by cutting key rates by three-quarters of a percent. The refinance share of last week’s mortgage activity was 73 percent, up from 60 percent the previous week.

Mortgage rates rose:

• 30-year fixed-rate mortgages increased to 5.6 percent from 5.49 percent.
• 15-year fixed-rate mortgages increased to 5.04 percent from 4.96 percent.
• 1-year ARMs increased to 5.7 percent from 5.51 percent.

Source: Mortgage Bankers Association (01/30/08)