Mortgage Rates Slip Again to New Lows; Refinancing Surges

Low interest ratesMortgage rates reached new lows yet again this week with the 30-year fixed at 4.42 percent, down from last week’s 4.44 percent – and the historic dive in rates appears to have revived the refinancing sector.
The index by the Mortgage Bankers Association that gauged loan refinancing activity for last week registered a 17.1 percent jump from the previous week — and was at the highest level since the week ending May 15, 2009.
The MBA’s report ends a virtual drought in refinancing activity in recent weeks, despite the nearly two-month slide in long-term mortgage rates to historic lows.
The refinance share of mortgage activity increased to 81.4 percent of total applications from 78.1 percent the previous week, which is the highest refinance share observed since January 2009, the MBA said.
Freddie Mac also reported another low for the 15-year fixed rate this week at 3.9 percent, down from 3.92 percent last week.
The 5-year Treasury-indexed hybrid, adjustable-rate mortgage (ARM) averaged 3.56 percent this week, unchanged from last week’s new low.
Freddie Mac has been tracking the 30-year fixed-rate since 1971; the 15-year rate since 1991, and the 5-year adjustable since 2005.

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