Consumers sought fewer mortgages
once again this week
Source:
Informa Research Services
(07/08/2011) Mortgage
rates crept upwards once again last week, prompting fewer consumers across the
country to apply for new mortgages.
The
number of applications for new home loans slipped 5.2% for the week ending July
1, according to the latest weekly statistics from the Mortgage Bankers
Association. This drop was led entirely by a 9.2% drop in the number of
refinances sought during the week, the third straight period in which it has
fallen. Currently, the number of refinances being sought is at the lowest level
observed since early May.
Refinances
may be popular options for many consumers when interest
rates are low. This is because consumers can potentially save hundreds of dollars on
their monthly bills by checking the latest online rate tables to find the best
local mortgage
rates. Meanwhile,
the number of applications filed for new purchases increased during the week,
rising 4.8%, the report said. As a consequence, the total number of purchases
rose to 11.7% higher than in the same week last year.
The
drop in refinances and rise in purchases led the former's share of the total
mortgage market to slip to just 66.4%, down from the 69.5% observed last week,
the report said.
