Mortgage Applications for the week ending Feb. 3 decreased 1.2 percent over the previous week, according to today’s survey results reported by the Mortgage Bankers Association. Purchase applications fell 2.4 percent from a week prior. However, the Refinance Index had a slight increase of 0.2 percent.
“Last week was chock full of potentially market moving data. We had big economic reports, Alan Greenspan’s final Fed meeting, a State of the Union Address and heightened global tensions. Despite the tidal wave of new information, long-term rates stayed fairly steady,” said Bob Walters, Quicken Loans chief economist. “News from the Fed that they may continue raising short-term rates surprised the market, causing short-term rates to exceed long-term rates. The trend of homeowners to exit adjustable rate mortgages into the safety of fixed rates has intensified; those homeowners realize that when those ARMs adjust, they will adjust to rates higher than today’s current 30-year fixed rate.”
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