Rates Still Cheap

Lower Rates Boosted Mortgage Demand Last Week(January 25, 2006) --

Thanks to the lowest long-term rates in three-and-a-half months, U.S. mortgage applications climbed steadily in January.

The Mortgage Bankers Association reports its seasonally adjusted index of mortgage application activity for the week ending Jan. 20 rose 7.7 percent to 660.5. Volume was driven by demand for new mortgages as well as refinancing.

Mortgage rates on a 30-year fixed-rate mortgage, excluding fees, averaged 6.04 percent, down 0.03 percentage points from the previous week’s high of 6.07 percent. Rates have fallen steadily since the week ending Nov. 11, when they reached a 2005 high of 6.33 percent.

Source: Reuters News (01/25/06)