The Mortgage Bankers Association announced this morning that applications for mortgages dropped 8.7% last week compared to the week prior. This should come as no surprise, as last week saw rates climb to their highest levels in some time.
The Purchase Index saw applications fall by 4.3%, while the Refinance Index sank 15% from the previous week. Despite the rather significant lull in application activity, FHA loans remain a bright spot with applications jumping 4%.
Quicken Loans Chief Economist, Bob Walters, says he is thankful for FHA loans, which have been a lifeline for many Americans.
“Many consumers were disappointed last week by rising mortgage rates. Mortgages are like anything else, when the cost of living rises, so do interest rates. And, while housing prices are falling, there are still some consumers who are unable to secure financing.
“However, there are many more who can. FHA loan programs have been a major factor in helping consumers obtain affordable financing, and those who qualify for home loans are finding unprecedented bargains in the housing market.”
Related Info
- Quicken Loans FHA Express is the quickest way to get an FHA loan.
- Find today’s low mortgage rates
- Learn about refinancing with an FHA loan and buying a home with an FHA loan.
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