Thursday, June 25, 2009
Mortgage Activity Rebounds
Mortgage activity rebounded last week following four weeks of decline because of rising interest rates, the Mortgage Bankers Association (MBA) reported Wednesday.
Last week, the national average 30-year, fixed-rate mortgage (FRM) dipped 6 basis points to 5.44%, while the one-year, adjustable-rate mortgage (ARM) was unchanged at 6.54%.
In Iowa, the average for a 30-year, fixed rate loan was 5.65%, according to DataTrac. The average for the 15-year mortgage was 5.15%.
Although still 60 basis points higher than the historic lows seen only a month ago, the recent decline in the 30-year FRM has sparked interest in refinancing. Rising foreclosures have boosted home sales, but those foreclosures will in turn continue to dampen prices.