Interest Rates Rise: Mortgage Applications Fall

As with most things these days; interest rates for mortgage loans are have risen in the last year. And, with the rise in interest rates, the number of mortgage loan applications and refinance loan applications are becoming fewer and fewer in number. The number of new mortgage loan applications or new home loan applications have dropped 7.4% in the last year. This is directly linked to the fact that the average interest rate for a thirty year fixed rate mortgage loan today is on average 6.22%. While at this time last year the average interest rate for a new mortgage loan was 6.04%. That is an increase of .18%.

The rise in interest rates and fall of mortgage loan applications seems to also apply to people who want to refinance their mortgage loan or home loan. Refinancing mortgage loan applications dropped 9.6% in the past few weeks, the figures were up 4.2% from last year. But the rise in interest rates caused the percentage to fall in the past month. The current average interest rate for a fixed rate fifteen year refinancing mortgage loan is 5.93%.

Last year the interest rate was 5.92%. Also, the average interest rate for a one year adjustable rate mortgage (ARM) is now 5.91%, while last year the average was 5.85%. These increases seem small, but in the long run, a small rise in the percentage of interest that a person pays on a mortgage loan can mean a drastic increase in the total amount that they have to repay to their bank or other financial institution.

Contributing National Payday Staff Writer

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