Applications for mortgage loans in the United States dropped for the second straight week. This comes as interest rates are at their highest since December of 2005.
According to a survey of one national mortgage lender overall mortgage activity dropped 1.2% last week. Mortgages for new home purchases were down 2.4% last week.
Mortgage interest rates are up slightly this week; rates for a 30 year fixed mortgage are currently 6.25%. This is up .05% from last week. Rates have not been this high since the week of December 5th last year.
Interest rates for 15 year mortgages are averaging 5.84% this week. This rate is also up from the week before where it was 5.79%. One year Adjustable Rate Mortgage loans did not change this week; a one year ARM currently averages 5.48%.
Industry watchers stay much of the mortgage activity is currently in the form of refinancing. Many homeowners with Adjustable Rate Mortgages have been refinancing to traditional fixed rate mortgages because of inflationary concerns and rising interest rates.