Mortgage Rates Dive, Loan Activity Spikes!
Posted Jan 25, 2012
30 Year Fixed Rate Lowest Ever
Mortgage rates dove to new all-time record lows during the week ending January 13, 2012, the Mortgage Bankers Association (MBA) said in its weekly report this morning.
Average interest rates for 30-year fixed-rate mortgages (those with conforming loan balances of $417,500 or less) fell week-over-week from 4.11 percent to 4.06 percent, which is the lowest rate ever observed for 30-year fixed mortgages in the history of the MBA’s Weekly Mortgage Applications Survey.
“Interest rates dropped last week due to continuing anxieties regarding the fragile economic situation in Europe,” Michael Fratantoni, MBA’s Vice President of Research and Economics, said in a statement.
Shorter-term, 15-year fixed-rate mortgages also established new historical lows in this latest survey, the MBA said. Average rates for 15-year fixed mortgages fell to 3.33 percent from 3.40 percent the previous week.
In addition, yet another new historical low was established with FHA-backed 30-year fixed-rate mortgages. The average interest rate for this mortgage product dropped to 3.91 percent from 3.96 percent one week earlier.
Refinance, purchase activity increase
Overall, mortgage applications rose 23.1 percent week-over-week, the MBA said. This increase was fueled by both refinance and purchase activity.
The MBA’s Refinance Index spiked 26.4 percent on a weekly basis, reaching its highest point since August 8, 2011. This increase resulted in the refinancing representing the largest share of overall application activity (82.2 percent of total applications) since late October 2010.
“With mortgage rates reaching new lows, refinance volume jumped and MBA’s refinance index reached its highest level in the last six months,” Fratantoni said. “Purchase activity also increased as buyers returned to the market after the holiday season.”
Purchase activity rose 10.3 percent week-over-week and is at its highest level in more than a month (December 12, 2011).
By Max Thompson
January 18, 2012
Mortgage rates dove to new all-time record lows during the week ending January 13, 2012, the Mortgage Bankers Association (MBA) said in its weekly report this morning.
Average interest rates for 30-year fixed-rate mortgages (those with conforming loan balances of $417,500 or less) fell week-over-week from 4.11 percent to 4.06 percent, which is the lowest rate ever observed for 30-year fixed mortgages in the history of the MBA’s Weekly Mortgage Applications Survey.
“Interest rates dropped last week due to continuing anxieties regarding the fragile economic situation in Europe,” Michael Fratantoni, MBA’s Vice President of Research and Economics, said in a statement.
Shorter-term, 15-year fixed-rate mortgages also established new historical lows in this latest survey, the MBA said. Average rates for 15-year fixed mortgages fell to 3.33 percent from 3.40 percent the previous week.
In addition, yet another new historical low was established with FHA-backed 30-year fixed-rate mortgages. The average interest rate for this mortgage product dropped to 3.91 percent from 3.96 percent one week earlier.
Refinance, purchase activity increase
Overall, mortgage applications rose 23.1 percent week-over-week, the MBA said. This increase was fueled by both refinance and purchase activity.
The MBA’s Refinance Index spiked 26.4 percent on a weekly basis, reaching its highest point since August 8, 2011. This increase resulted in the refinancing representing the largest share of overall application activity (82.2 percent of total applications) since late October 2010.
“With mortgage rates reaching new lows, refinance volume jumped and MBA’s refinance index reached its highest level in the last six months,” Fratantoni said. “Purchase activity also increased as buyers returned to the market after the holiday season.”
Purchase activity rose 10.3 percent week-over-week and is at its highest level in more than a month (December 12, 2011).
By Max Thompson
January 18, 2012
