Mortgage Applications Make Big Jump as Interest Rates Drop

 
Mortgage Applications Make Big Jump as Interest Rates DropMortgage applications soared 15 percent last week compared to a week earlier as interest rates dropped, according to the Mortgage Bankers Association.
The group’s index that measures just mortgage applications for the purchase of a home increased 15 percent, while its barometer of refinance applications also rose 15 percent, both on a seasonally adjusted basis.
The refinance index was at its highest level since mid-January.
The refinance share of mortgage activity was essentially unchanged from the previous week at 77 percent of total applications. The adjustable-rate mortgage (ARM) share of activity was unchanged at 4 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages, with conforming loan balances ($417,500 or less), decreased to 3.70 percent from 3.77 percent, for 80 percent loan-to-value ratio (LTV) loans.  The contract rate was at its lowest level since the week ending January 25, 2013.
The average contract interest rate for 30-year fixed-rate mortgages, with jumbo loan balances (greater than $417,500), decreased to 3.80 percent from 3.93 percent, for 80 percent LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA (Federal Housing Administration, decreased to 3.47 percent from 3.54 percent, for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.96 percent from 3.03 percent, the lowest contract rate since the week ending January 25, 2013.
The average contract interest rate for 5/1 ARMs decreased to 2.55 percent from 2.65 percent, for 80 percent LTV loans.
 

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