Industry NewsMortgage

Refi applications soar as rates hit new lows

Survey: Borrowers with good credit take advantage

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Applications for refinance loans jumped 25.6 percent for the week ending Jan. 9 as borrowers sought to take advantage of a continued free-fall in fixed-rate mortgage rates for borrowers with good credit. Applications for purchase loans fell 14.1 percent, and refinance applications accounted for 85.3 percent of all mortgage applications, the Mortgage Bankers Association said in releasing a weekly survey of lenders. Applications for adjustable-rate mortgages accounted for 1.1 percent of activity, up from 0.9 percent the previous week, with ARM loans offering little or no savings over fixed-rate loans. Freddie Mac, in its weekly survey of mortgage rates, said interest rates last week on 30-year fixed-rate conforming loans fell for the tenth week in a row, to a new low. For the week ending Jan. 8, 30-year fixed-rate mortgages averaged 5.01 percent with an average 0.6 point, down from 5.1 percent a week ago and 5.87 percent a year ago. Freddie Mac has never seen lower rates si...