This guy likes green leafy shoots and low mortgage rates.
Today the Mortgage Banker’s Association released their Weekly Application Survey. Total mortgage applications rose 4.9 percent on a seasonally adjusted basis from last week.
Refinance activity continues to dominate the mortgage market, increasing 5.7 percent from the week prior. Refinance applications are at their highest point since May 2009. Purchase activity decreased 0.6 percent on a seasonally adjusted basis from the week before.
From the press release:
“The volume of refi applications last week was up 26% over their level four weeks ago. Mortgage rates dropped to their lowest level in the survey, going back to 1990, as incoming data continue to indicate that economic growth has slowed,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “We are at a new 15 month high for the Refinance index. With rates this low, many borrowers who refinanced in the past two years may well have an incentive to refinance again, and this is likely increasing refi application activity.”
Refinance activity continues to dominate mortgage applications, accounting for 82.4 percent of all activity. This should not come as a surprise to anyone, as mortgage refinancing has been driven by record low mortgage rates. According to Freddie Mac’s weekly mortgage rates survey, the average mortgage rate on a 30 year fixed rate mortgage is 4.42 percent, the lowest since Freddie Mac has been keeping track, and likely the lowest rate since the 1950s.
This report has been more or less the same for the last few weeks, and there’s not much more to say about it. If you are paying more than 1 percent above the current offered mortgage rate, you should really consider seeing if you qualify to refinance. Call one of our mortgage professionals today at 877-868-2503. See if we can save you some money.
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