Mortgage Applications Surge on Low Interest Rates

by Chicago Agent

Mortgage applications soared nearly 10 percent this past week as record low interest rates lifted refinancing activity, an industry trade group said.

The Mortgage Bankers Association, which measures loan application volume through the market composite index, said loan volume increased 7.5 percent on a seasonally adjusted basis from a week earlier.

The refinance index alone grew 9.4 percent from the previous week, while the seasonally adjusted purchase index increased a slight 0.1 percent.

The refinance share of mortgage activity edged up to 80.5 percent of all loan applications, compared to 80 percent the previous week.

Application demand also grew as the 30-year FRM on loans with conforming loan limits fell to 4.05 percent from 4.09 percent a week earlier, making it the lowest rate in survey history.

The average rate on the 30-year FRM jumbo loan fell to an all-time record low of 4.29 percent from 4.33 percent a week earlier.

The 30-year FRM FHA loan declined to 3.89 percent from 3.96 percent, while the 15-year FRM declined to 3.33 percent from 3.36 percent a week earlier.

The average contract interest rate on 5/1 ARMs also fell to 2.91 percent from 2.94 percent.



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