Pullback in Mortgage Rates Spurs Jump in Refinancing Applications

Pullback in Mortgage Rates Spurs Jump in Refinancing ApplicationsThe virtual collapse in refinancing activity over the summer followed higher mortgage rates, but bankers are seeing a bit of a comeback in applications as rates have eased in recent weeks.
Mortgage applications jumped higher for the week ending Oct. 25, increasing 6.4 percent from a week earlier, the Mortgage Bankers Association said Wednesday.
The refinance component of the group’s index surged 9 percent. Purchase applications rose 2 percent.
The refinance share of mortgage activity increased to 67 percent of total applications — the highest level since June 2013.
The average contract interest rate for a 30-year, fixed-rate mortgage, with a conforming loan limit, dropped to 4.33 percent from 4.39 percent, the MBA said.
Meanwhile, the 30-year, fixed rate jumbo mortgage fell to 4.36 percent from 4.43 percent.
The average 30-year fixed rate loan backed by the Federal Housing Administration (FHA) dropped to 4.06 percent from 4.15%. The 15-year fixed rate dropped to 3.42 percent from 3.51 percent.
The 30-year fixed-rate loan with a conforming loan balance, the jumbo loan and the 15-year fixed-rate mortgage all fell to their lowest levels since June 2013.
Additionally, the 5/1 ARM fell to 3.17 percent, compared to 3.25 percent a week earlier.

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