Tags: mortgage | applications | refinance | home loan demand

Refinance Applications Drive Increase in Mortgage Applications 8.2 Percent

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By    |   Wednesday, 17 Feb 2016 01:58 PM


Mortgage applications increased 8.2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending February 12.

The Market Composite Index, a measure of mortgage loan application volume, increased 8.2 percent on a seasonally adjusted basis from one week earlier, the survey said.  The refinance share of mortgage activity increased to its highest level since February 2015, 64.3 percent of total applications, from 61.2 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since April 2015, 3.83 percent, from 3.91 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since April 2015, 3.11 percent, from 3.18 percent.

"Treasury rates fell again last week, and mortgage rates fell to their lowest level in over a year, with rates on jumbo loans dropping to their lowest level since December 2012,'"  Michael Fratantoni, chief economist for the MBA, told CNBC. "As we have noted in recent weeks, borrowers with larger loans tend to be more sensitive to a drop in rates, because they stand to benefit more from refinancing."

Mortgage rates have continued to fall despite the Federal Reserve's decision in December to raise the short-term rate it controls for the first time since 2006, the AP explained.

Global economic worries and the turmoil in world stock markets have pushed up prices of U.S. government bonds as investors seek safety. That has depressed the yields on the bonds, which mortgage rates track. The yield on the 10-year Treasury bond has dropped to stunningly low levels below the significant 2-percent mark.

(Newsmax wire services contributed to this report).

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Mortgage applications increased 8.2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending February 12.
mortgage, applications, refinance, home loan demand
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2016-58-17
Wednesday, 17 Feb 2016 01:58 PM
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