According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages fell again last week. Mortgage rates are now at their lowest point since June. Despite the drop in rates, however, demand for mortgage loans overall was down 0.4 percent, due to a 6 percent slide in the seasonally adjusted Purchase Index. The Refinance Index, on the other hand, saw a 3 percent uptick due to consecutive weeks of declining mortgage rates. The increase brought the refinance share of total mortgage activity up to 63 percent. According to the report, all fixed-rate mortgages fell to three-month lows last week. More here.
Tag Archive for purchase index
Average Mortgage Rate Dips, Refinance Demand Surges
A drop in the average contract interest rate for 30-year fixed-rate mortgages caused an 11.2 percent spike in demand for mortgage applications last week, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. The increase was due, in part, to an 18 percent surge in the Refinance Index and a 3 percent jump in the seasonally adjusted Purchase Index. The previous week saw a 13.5 percent drop in overall demand for mortgage applications, despite an adjustment for the Labor Day holiday. Last week’s recovery brought demand back to nearly the same level as before the holiday. More here and here.