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New Year Starts With Rates At Record Lows

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates declined during the last two weeks of 2020. In fact, rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The drop means mortgage rates remain at all-time survey lows. Joel Kan, MBA’s associate vice president of economic and industry forecasting, said record-low rates are good for fixed-rate borrowers. “The record-low rates for fixed-rate mortgages is good news for borrowers looking to refinance or buy a home, as around 98 percent of all applications are for fixed-rate loans,” Kan said. But while rates remains favorable, requests for mortgage applications fell 4.2 percent during the holiday season, mostly due to a 6 percent drop in refinance demand. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)