Industry News

Real estate refinancings hit 5-month high

Borrowers cash in on lower rates

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Applications for mortgage refinancings swelled to a five-month high last week, as overall mortgage applications climbed 4.9 percent on a seasonally adjusted basis, according to the Mortgage Bankers Association's weekly survey. The seasonally adjusted refinance index increased by 7.7 percent to 2,211.1 from 2,052.5 one week earlier, and is now at the highest level since the week of April 21, 2004. The MBA seasonally adjusted purchase index increased by 2.7 percent to 469.1 from 456.6 the previous week. The refinance share of mortgage activity increased to 45.9 percent of total applications from 44.5 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 32.5 percent of total applications from 33.1 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.64 percent from 5.66 percent one week earlier. Points including the origination fee increased to 1.35 from 1.29 the previous week for 80 percent loa...