Daily Real Estate News  |  October 15, 2008  |   Mortgage Applications Rise in Week of Turmoil
Despite the nationwide economic turmoil last week, its weekly mortgage application index rose 5.1 percent to 489.3 from 465.5 on a seasonally adjusted basis, the Mortgage Bankers Association reported today.

On an unadjusted basis, the index increased 5.4 percent compared with the previous week and was down 17 percent compared with the same week a year ago. The Refinance Index increased 12.5 percent, while the Conventional Purchase Index rose only 0.4 percent.

"Treasury yields were extremely volatile last week. The yield on the 10-year Treasury note – the benchmark for 30-year fixed mortgage rate – moved up about 40 basis points over the course of the week," said Orawin Velz, MBA's associate vice president of economic forecasting.

"Lower yields earlier in the week appeared to have spurred refinance activity, which then faded as the week went on and rates began to rise."

By the end of the week, interest rates had increased significantly:

• 30-year fixed-rate mortgages increased to 6.47 percent;
• 15-year fixed-rate mortgages increased to 6.17 percent;
• 1-year ARMs increased to 6.67 percent from 6.60 percent.

Source: Mortgage Bankers Association (10/15/2008)