The 30 year fixed mortgage rate jumped 0.21 percentage points this week averaging 6.17 percent. The survey also shows the average for the 15 year fixed mortgage rate jumping 0.21 percentage points to 5.7 percent for the week ending May 30th, 2008.
In light of increasing mortgage rates, mortgage applications have started the steady decline as refinancing and home purchasing in the U.S. becomes even more unattractive. Overall mortgage applications decreased by 15.3 percent, with refinance applications accounting for a 25.7 percent decrease and purchase applications decreasing by 5.4 percent throughout the week.
This is the lowest level that mortgage applications have reached in six years, reflecting the severity of the mortgage crisis. Many potential homebuyers are still waiting for home values to hit bottom before making any offers. With foreclosures on the rise, lenders are tightening credit standards. This can mean that when values do finally hit rock bottom, the consumers who currently qualify for mortgage might not qualify any longer.
For the mortgage rate forecast for June 2008 visit Future Planning Financial at www.fpf-direct.com.
