Home loan applications jump 9% as interest rates fall

Applications for home loans jumped 9% last week as interest rates declined for all types of mortgages, falling back to 5% for 30-year fixed loans, the industry trade association reported Wednesday.

The Mortgage Bankers Assn.'s weekly survey is showing an increase in applications for both purchase and refinance loans.

The typical rate on the 30-year fixed mortgage was 5.13% the week before last, the group says. Points paid to lenders (including the origination fee) also fell on 30-year loans, from an average 1.17% of the loan amount to 1.05%. Rates also fell for 15-year fixed mortgages and for variable-rate loans.

The rates apply to borrowers with good credit and have a 20% down payment or 20% equity in the home.

Written in The Los Angeles Times