New Jersey Real Estate News

KAREN'S BLOG: Mortgage applications rise.

News from the National Association of Realtors: Applications for mortgages to purchase homes rose 2.5 percent last week compared to the previous week on a seasonally adjusted basis, according to the weekly survey by the Mortgage Bankers Association. On an unadjusted basis, purchase applications increased 9.3 percent from the previous week. Purchase applications were down 34.7 percent than the same week a year ago.

This is the highest purchase volume since the week ending May 7. “The increase in purchase activity was led by a 17.2 percent increase in FHA applications, while conventional purchase applications also increased by 3.6 percent,” says Jay Brinkmann, MBA’s chief economist.

“This is the second straight weekly increase in purchase applications and the highest Purchase Index level since the expiration of the home buyer tax credit program. One possible driver of last week’s big increase in FHA applications was a desire by borrowers to get applications in before new FHA requirements took effect Oct. 4, which included higher credit score and down payment requirements,” Brinkmann adds.

Most mortgage rates also decreased:

• 30-year fixed-rate mortgages decreased to 4.25 percent from 4.38 percent.
• 15-year fixed-rate mortgages decreased to 3.73 percent from 3.77 percent.
• 1-year ARMs increased to 7.11 percent from 7.04 percent.

Source: Mortgage Bankers Association (10/06/2010)