Refinance Mortgage Apps Jump 10% as Rates Ease Slightly

Refinance Mortgage Apps Jump 10% as Rates Ease SlightlyAll it takes is a dip in mortgage rates to spur a jump in refinancing volume, and that’s what happened last week, according to the Mortgage Bankers association.
Mortgage applications for both the purchase of a home or refinancing increased 4.7 percent last week, from one week earlier, according to data released Wednesday by the MBA.
The refinance component of the index surged 10 percent from the previous week. Meanwhile, applications for purchases actually decreased 4 percent from one week earlier.
The average contract interest rate for 30-year fixed-rate mortgages, with conforming loan balances ($417,000 or less), decreased to 4.57 percent, the lowest level since November 2013, from 4.66 percent, for 80 percent loan-to-value ratio (LTV) loans.
The refinance share of mortgage activity increased to 64 percent of total applications, the highest level in a month, from 62 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 7 percent of total applications.
Here’s more data on rates from the MBA:

  • The average contract interest rate for 30-year fixed-rate mortgages, with jumbo loan balances (greater than $417,000), decreased to 4.57 percent, the lowest level since November 2013,  from 4.58 percent, for 80 percent LTV loans.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.24 percent, the lowest level since November 2013, from 4.29 percent, for 80 percent LTV loans.
  • The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.68 percent, the lowest level since December 2013, from 3.72 percent, for 80 percent LTV loans.

Leave a Reply

Your email address will not be published. Required fields are marked *