For the 2nd wk running, US mortgage rates hit new lows.
Demand for mortgages rose as home-loan interest rates continued to fall to new record lows.
Total mortgage application volume rose 5.1% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The refinance index increased 12% from the prior week and was 107% higher than the same wk 1 yr ago.
“Mortgage rates continued their downward trend, with the 30-year fixed rate falling 7 basis points to 3.19% – another record low in MBA’s survey and 63 basis points lower than the recent high in late March. The drop in rates led to a jump in refinance activity to the highest level in a month, with refinance loan balances also climbing to a high last seen in March,” said MBA’s Associate Vice President of Economic and Industry Forecasting.
“Purchase applications fell over the week but remained 15% higher than a year ago – the 8th consecutive week of year-over-year increases. Purchase activity remains relatively strong, despite the continued economic uncertainty and high unemployment caused by the ongoing pandemic.“
The refinance share of mortgage activity increased to 64.2% of total applications from 60.1% the prior week.
Have a healthy day, Keep the Faith!