MBA: Mortgage applications rise as interest rates fall

According to the Mortgage Bankers Association of America, a decrease in interest rates boosted mortgage applications during the week ended July 31.

<< Here is some information from the Nashville Business Journal >>

With the average 30-year fixed rate falling to 5.17 percent, the number of total loan applications rose 4.4 percent over the previous week, according to the Mortgage Bankers Association.

The number of people refinancing grew by 7.2 percent over the previous week, and is up 35 percent above its recent low at the end of June.

Overall, the number of people refinancing loans made up 54.2 percent of total mortgage applications, up from 52.6 in the previous week. However, the percentage of adjustable-rate loans refinanced dipped to 5.4 percent from 5.5 percent of the total activity.

The average interest rate for 15-year fixed-rate mortgages decreased to 4.6 percent from 4.75 percent, with points decreasing to 1 from 1.14.

The average interest rate for one-year ARMs increased to 6.67 percent from 6.66 percent, with points remaining unchanged, at 0.09.

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Its been a while since PrivoCorp has worked on ARMs for customers. It is not difficult to understand that given the rates mentioned above. PrivoCorp is one of the fastest processors of Conventional and FHA mortgages in the country.