New Loans Increase as Rates Claw Higher

New loan applications grew 2.2 percent last week as borrowers tried to lock in low interest rates, according to the Mortgage Bankers Association. The volume of mortgage applications reached its highest level since May; clearly the spike in mortgage rates motivated more homebuyers to act now.

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.50 percent from a low of around 4.20 percent in the past couple months. Fear is a great motivator and may be just what the housing market needs.

For more on mortgages and homeownership see these AOL Real Estateguides:
  • Mortgage Jargon in Simple Terms
  • How to Get Pre-Approved for a Mortgage
  • Real Estate Terms and What They Mean
  • How to Get a Low Mortgage Rate

  • More on AOL Real Estate:
    Find out how to calculate mortgage payments.
    Find homes for sale in your area.
    Find foreclosures in your area.
    Get property tax help from our experts.

    Read Full Story

    Find a home

    Powered by Zillow