Low Long-Term Rates Stabilize Mortgage Activity

News provided by Quicken Loans

The Mortgage Bankers Association announced this morning that applications for mortgage loans dropped 3.0 percent last week compared to the previous week.

The Purchase Index decreased by 1.8 percent and the Refinance Index decreased 4.5 percent from the previous week.

"Low long-term interest rates continue to remain attractive to consumers looking to move out of adjustable rate mortgages prior to their rates resetting," said Bob Walters, chief economist for Quicken Loans. "Given the continued strengthening of the job market and the positive tone of the Fed's announcement last week, the outlook for a sustained refinance boom appears positive."

This article is reprinted by permission from Quicken Loans © 2006 Quicken Loans Inc. All rights reserved.