Real estate refinancings surge

Another boost in refinancings last week pushed overall mortgage activity up 2.2 percent on a seasonally adjusted basis from the week before, the Mortgage Bankers Association reported today.

The seasonally adjusted refinance index increased by 9.9 percent to 1,645.2 from 1,497.5 one week earlier whereas the purchase index decreased by 3 percent to 443.9 from 457.4 the previous week.

The refinance share of mortgage activity increased to 44 percent of total applications from 42.2 percent the previous week. The adjustable-rate-mortgage share of activity increased to 30.6 percent of total applications from 28.1 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.07 percent from 6.08 percent one week earlier. Points including the origination fee remained at 1.23 for 80 percent loan-to-value ratio loans. 

The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.64 percent from 5.66 percent. Points including the origination fee increased to 1.23 from 1.17 for 80 percent loan-to-value ratio loans. 

The average contract interest rate for one-year adjustable-rate mortgages decreased to 5.39 percent from 5.42 percent one week earlier. Points including the origination fee remained at 0.92 for 80 percent loan-to-value ratio loans. 

Washington, D.C.-based Mortgage Bankers Association is a national association representing the real estate finance industry. The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

***

What's your opinion? Send your Letter to the Editor to opinion@inman.com.

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.