May 5, 2010 – Mortgage applications to purchase homes rose 13 percent last week over the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.
This was the third consecutive week applications to purchase homes have increased, rising 24 percent compared to March. On an unadjusted basis, purchase applications increased 14.1 percent compared with the previous week and were up 10.3 percent from the same week a year ago. The MBA credited tax incentives for the increase.
More than 50 percent of the applications involved government-guaranteed loans, particularly those backed by the Federal Housing Administration, the highest level in 20 years, the MBA said.
Most mortgage rates declined compared to the previous week:
- 30-year fixed-rate mortgages decreased to 5.02 percent from 5.08 percent;
- 15-year fixed-rate mortgages decreased to 4.34 percent from 4.38 percent;
- 1-year ARMs remained unchanged at 7.03 percent.