The number of mortgage applications in the United States dropped again last week as mortgage interest rates reached a 17 month high. Meanwhile, the number of people refinancing their mortgage loans has also dropped to the lowest level for the year.
According to a survey of national mortgage lenders refinancing activity dropped .6% last week. Interest rates for 30 year fixed mortgages averaged 6.33% last week. This is up .02% from the week before. This interest rate is the highest recorded since June of 2004 when interest rates averaged 6.34%. According to this national survey, new home purchase applications are up for the second week in a row. In spite of this, new home applications are down from their levels this time last year.
Interest rates for 15 year fixed rate mortgages averaged 5.87% last week. This is up from 5.85% the week before. Adjustable rate mortgages, called ARMs, are up to 5.46% for a one year mortgage. The previous week a one year adjustable rate mortgage averaged 5.45%.