Industry News

Rates plummet, home loan apps soar

Borrowers take action as 30-year fixed hits 14-month low

Overall mortgage application volume increased 8.1 percent last week on a seasonally adjusted basis from the week before, inspired by a significant drop in interest rates, the Mortgage Bankers Association reported today. The seasonally adjusted refinance index increased by 13.7 percent to 1,989.7 from 1,749.6 the previous week, and the purchase index increased by 4.9 percent to 426.6 from 406.7 one week earlier. The refinance share of mortgage activity increased to 50.1 percent of total applications from 46.9 percent the previous week, and is now at its highest level since April 2004. The adjustable-rate mortgage (ARM) share of activity decreased to 23.9 from 24.5 percent of total applications from the previous week, and is at its lowest level since October 2003. The average contract interest rate for 30-year fixed-rate mortgages decreased to its lowest level since October 2005, falling to 5.98 percent last week from 6.13 percent the week before. Points including the origination ...

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