Industry NewsMortgage

Applications for refis rise 41.5%

Low rates spur boom

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Applications for refinance loans jumped 41.5 percent last week, after the Federal Reserve announced expanded purchases of mortgage-backed securities that pushed interest rates to lows not seen in six decades, the Mortgage Bankers Association said today. Applications for purchase mortgages for the week ending March 20 were up a more modest 4.2 percent, the MBA said, with requests for refinance loans accounting for 78.5 percent of all mortgage applications. The Fed announced on March 18 a $1.15 trillion expansion of its balance sheet, including a $750 billion increase to a previous commitment to buy $500 billion in mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac and Ginnie Mae (see story). The Fed's announcement brought the average contract interest rate for 30-year fixed-rate mortgages to 4.63 percent last week, down from 4.89 percent the week before, the MBA said. Points, including the origination fee, averaged 1.13, down from 1.23 the week before. That ra...