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Wednesday, February 23 2011 - By Kay Lynn Clay
Mortgage applications increased more than 13 percent last week.
Apparently, last week was a great time to apply for a mortgage, as loan applications increased more than 13 percent.

According to the Mortgage Bankers Association's weekly applications survey, mortgage applications increased 13.2 percent on a seasonally adjusted basis compared to the previous week. Unadjusted, the rate increased 14.8 percent.

The increase in applications was contrasted by a decrease in interest rates, which may have been due to the political unrest brewing in several Middle Eastern countries, said experts.

"Ongoing turmoil in the Middle East brought interest rates lower last week, said Michael Fratanoni, vice president of research and economics for MBA. "Borrowers took advantage of these lower rates, bringing application activity back near levels from two weeks ago, following sharp declines last week."

Currently, 30-year fixed-rate mortgage rates are at 5 percent, while 15-year fixed-rates stand at 4.37 percent. At 4.9 percent this time last year, 30-year FRM were slightly lower but 15-year FRM were the same.

In the third week of February, MBA's weekly mortgage applications survey showed volume had decreased by 8.5 percent from the previous week on a seasonally adjusted basis. On an unadjusted basis, it decreased by 7.3 percent.
 

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