With rates highest since October, mortgage demand drops
Add a Comment 
interest rates, mortgages March 12th, 2008NEW YORK (Reuters) — Mortgage applications dipped last week, reflecting lower demand for home loan refinancing as interest rates surged to their highest since October, an industry group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which consists of both purchase and refinance loans, for the week ended March 7 fell 1.9% to 671.7.
The housing market is suffering one of the worst downturns in history. Last week’s drop in demand may indicate what is in store for the hard-hit sector this spring, which is the peak home-buying season.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.37%, up 0.39 percentage points from the previous week. That was the highest since the week ended Oct. 12 when it hit 6.40%.
Tags: interest rates, mortgages
