Industry NewsMortgage

Refinancings rise amid lower rates

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Home loan application volume gained 2.9 percent last week as interest rates continued to fall, the Mortgage Bankers Association reported today. Refinancings were up a seasonally adjusted 6.5 percent from the end of April, but that gain was offset by a 0.7 percent decrease in the index for purchase loans. As a result, the refi share of loan applications edged up from 47.1 percent to 48.7 percent and the adjustable-rate mortgage (ARM) share grew from 6.8 percent to 8.3 percent. Interest rates across all loan types dipped for the second straight week, MBA reported, with average rates on 30-year fixed-rate mortgages sinking from 5.91 percent to 5.82 percent, rates on 15-year fixed loans slipping from 5.49 percent to 5.38 percent, and rates on one-year ARMs falling from 6.77 percent to 6.6 percent. The points (loan fees expressed as a percent of the loan amount) that borrowers paid to attain these rates were mostly higher last week. On 30-year loans, points rose from 1.12 to 1.2...