According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. Rates were down from the week before across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Rates are now at the lowest level since last October and borrowers are noticing. In fact, the MBA’s measure of purchase and refinance activity was up nearly 30 percent last week. Mike Fratantoni, MBA’s senior vice president and chief economist, says refinancing activity saw the biggest boost. “Homeowners responded swiftly, with refinance application volume jumping almost 60 percent compared to the prior week,” Fratantoni said. “Homeowners with larger loans jumped first, as the average loan size on refinances reached its highest level in the 35-year history of our survey. Almost 60 percent of applications were for refinances, but there was also a pickup in purchase applications.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
