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Interest rates rising

Email|Link|Comments (1) Posted by Binyamin Appelbaum February 13, 2008 04:18 PM

Mortgage rates rose again last week. The average rate on a 30-year fixed-rate loan climbed to 5.72 percent from 5.61 percent, according to the Mortgage Bankers Association. Rates on other types of mortgage loans rose by similar increments.

As might be expected, the number of applications for mortgage loans dropped about 2.1 percent, though the trade group said demand for new loans remained 65 percent higher than during the same week last year.

Application volume surged as interest rates declined through the fall and into January. The great unanswered question is how many applicants actually are qualifying for loans. Tighter standards mean many applicants may be turned away. And the tighter standards may themselves be causing an increase in the number of applications as people work to find a lender willing to give them money.

Is it time for you to get a new loan? Check out a recent article in the Globe, and an earlier post on this blog.

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1 comments so far...

We had to apply more than once. We ran into snags getting refinanced because everyone wants to see more equity now. We finally caved and paid off our second mortgage. Time dragged on as we tried to find someone else and we had to get a new appraisal. The value dropped 20k in 6 months which meant a lot more money was required at closing to pay off the 2nd. At least we locked in a good rate and got into a 30yr fixed.

Posted by Gary February 15, 08 02:41 AM