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Mortgage applications increase, rates could soon rise

Posted on Wednesday, January 15, 2014 at 9:57:12 AM

While experts may disagree on the specifics of current trends, one thing is a given - residential financing will change in 2014. What isn't known yet are the details, but many agree that rates could be on the rise.

Recent data from the Mortgage Bankers Association has shown an added interest in residential financing, though. Mortgage applications increased 11.9 percent for the week ending Jan. 10, compared to one week prior. In addition to that statistic, the MBA's Refinance Index also ticked up, now 11 percent higher week-over-week. 

The MBA reported that the average interest rate for a 30-year fixed-rate mortgage with a loan balance at $417,000 or less dropped to 4.66 percent. Those with jumbo loan balances also declined, now at 4.58 percent compared to 4.66 percent. 

According to HousingWire, economists remain undecided about the direction interest rates will take in 2014, although they most likely won't stay the same.

Mike Fratantoni, chief economist with the MBA, told the news source that his organization believes that rates are headed up, thanks in part to a growing economy both in the U.S. and abroad. In addition, a declining unemployment level could also factor into that trend.