Industry News

Real estate refinancings plummet

Borrowers not motivated by falling interest rates

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Overall mortgage applications declined 3.4 percent last week on a seasonally adjusted basis from the week before, as refinancings fell for the fifth consecutive week, the Mortgage Bankers Association reported today. The seasonally adjusted purchase index decreased by 1.2 percent to 472.3 from 477.9 the previous week, whereas the refinance index decreased by 6.9 percent to 1,584.1 from 1,702.4 one week earlier. The refinance index is down 17.4 percent compared to four weeks ago when the index was 2,144.5. The refinance share of mortgage activity decreased to 39.9 percent of total applications from 40.4 percent the previous week. The adjustable-rate-mortgage share of activity increased to 33.2 percent of total applications from 32.9 percent the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.26 percent from 6.33 percent one week earlier. Points including the origination fee decreased to 1.11 from 1.26 for 80 percent loan-to-value rati...