Mortgage Applications Bounce Back, Unemployment Declines
February 5, 2010 - According to the Mortgage Bankers Association, mortgage applications rose 21% last week, reaching its highest level in nearly six weeks. Refinances were the most prevalent contributor to the gain, rising 26.3%, while purchase loan requests rose a more modest 10.3%.
30 year mortgage rates dipped 0.1%, but still remain above the five percent mark. Coming in at 5.1%, this borrowing cost was 0.40% above last March's record low.
While mortgage applications are back on the rise, the U.S. unemployment rate dropped to 9.7% during the month of January. Shifting down from an unrevised 10.0% in December, nonfarm payrolls fell 20,000 for the month.
Temporary hires and record low interest rates were the largest players in the recent decline.
Overall, the number of unemployed people dropped to 14.8 million, with the jobless rate for adult women dipping down to 7.9%; adult men remained saw little change at 10.0%.