Mortgage applications climb upwards

Led by a 6 percent increase in refinance loan applications, the overall mortgage loan rate, measured by the Market Composite Index, went up 4 percent, according to the Mortgage Bankers Association.

The seasonally adjusted Purchase index rose 0.3 percent, while the unadjusted Purchase index increased 1.1 percent, from last week, according to the MBA.

This increase in applications came as mortgage rates headed in the opposite direction. Rates on a 30-year-fixed-rate mortgage dropped four basis points to 4.76 percent, their lowest since December 3, according to the report. The effective rate also declined because discount and origination fee points fell. Rates for 15-year fixed-rate loans hit their lowest point since November 26, down seven basis points to 3.96 percent.

America's slow economic recovery in 2011 is contributing to the drop in interest rates. The concerns over rising gas prices and food costs may be dragging down the economy, according to Huliq.com.  

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