It appears demand for mortgage applications nationally is rising – in spite of recent fall out from the subprime lending fiasco. It was reported today the so-called Mortgage Banker Association Market Composite Index is up a full 1.6%. This number translates into a 23% increase in mortgage application activity over a year ago.
Interestingly, almost half of all new mortgage activity stems from folks refinancing their existing loans. The average interest rate for 30-year fixed-rate mortgages increased to 6.23 percent from 6.13 percent. The average interest rate for 15-year fixed-rate mortgages increased to 5.96 percent from 5.81 percent.