Mortgage applications surge again as rates slip

The latest weekly survey from the Mortgage Bankers Association reported an increase in mortgage applications as interest rates fell to their lowest level in weeks.

The trade group said the average interest rate for 30-year fixed-rate mortgages plunged to 4.83 percent from 4.98 percent the week before.

Overall applications increased by 5.3 percent in the week ending April 15, with refinance applications jumping 2.7 percent and purchases rising 10 percent. Analysts said rate hikes from the Federal Housing Administration played a significant role, as government application jumped more than 17 percent.

"Purchase application volume jumped last week largely due to another sharp increase in applications for government loans," said Michael Fratantoni, MBA's vice president of research and economics. "Borrowers were likely motivated to apply for loans before the scheduled increase in FHA insurance premiums."

Many potential buyers looking at Houston homes will likely be using FHA-backed loans. The Department of Housing and Urban Development said that more than 15 percent of all purchase mortgages nationwide in January, including more than 23 percent of new home loans, were FHA mortgages.

Courtesy of 2M Realty News