Mortgage applications slipped last week |
|
|
|
Published
:
Wed, 18 Apr 2007 16:31
|
NEW YORK (AP) - Fewer people applied for mortgage loans last week, a lending industry group reported, as cooling home prices and higher interest rates kept home buyers off the market.The Mortgage Bankers Association said its Market Composite Index, which measures the number of people who apply for mortgage loans, slipped 2.5 percent last week to 630.6. Applications to refinance existing mortgages slipped 0.3 percent, the MBA said.The group said the Easter holiday may have slowed applications.As more borrowers at the bottom of the credit ladder miss payments on their mortgages, many lenders are tightening their standards. The interest rate on a 30-year fixed-rate mortgage rose to 6.22 percent from 6.16 percent last week.Lenders also aren't offering as many adjustable-rate mortgages, which are exacerbating the mortgage credit crunch. Many borrowers with bad credit took out loans that began with low teaser rates and then reset higher, forcing a payment shock and often leading to default.Adjustable-rate mortgages as a share of all home loans fell to 18.1 percent from 18.7 percent.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
|
|
|
|
Print this Story
Banking and insurance highlights to 15:45 GMT 