Mortgage rates have risen a full 1% from March. Putting in question the prospects for a quick recovery to the housing market, the Mortgage Bankers Association reported this morning that loan application activity for the first week of June fell -7.2% compared to the prior week.  They also reported that the average rate for a 30-year fixed mortgage rose +0.32% to 5.57%. 

This marks the second week in recent months where fixed mortgage rates have exceeded the 5% mark, nearly a full 1% higher than the March bottom of 4.61%, puts them at the highest level since November 2008.  Industry experts fear that rising rates will put many potential buyers on the sidelines, and could potentially hurt families who need to refinance in order to lower their overall expenses.  Refinance applications activity by -11.8% in the week, while purchase application activity increased by only +1.1%.   Refinances accounted for 59.4% of activity, down significantly from the 70-80% levels we've seen recently.

Regards,

Gerard Ladalardo, CMPS
www.caloanpros.com
www.ePropertyhomes.com