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Mortgage Applications Rise as Loan Rates Fall

Mortgage Applications Rise as Loan Rates Fall
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Wednesday, 26 June 2019 11:22 AM

U.S. mortgage applications climbed last week, led by a pickup in refinancing requests, as some home borrowing costs fell to their lowest levels since September 2017, the Mortgage Bankers Association said on Wednesday.

The Washington-based group’s seasonally adjusted index on mortgage activity increased 1.3% to 518.7 in the week ended June 21, propelled by a 3.2% rise in refinancing activity.

Interest rates on 30-year fixed-rate “conforming” mortgages, or loans whose balances are $484,350 or less, decreased to 4.06%, the lowest level since September 2017. They averaged 4.14% the week before.

"Markets last week reacted to a more dovish FOMC statement and forecast, with Treasury yields falling after the meeting. Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9 percent jump in VA applications," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

"The 30-year fixed rate has now dropped in three of the last four weeks, and at 4.06 percent, reached its lowest level since September 2017. Despite these lower rates, purchase applications decreased 2 percent, but were still considerably higher (9 percent) than a year ago," he said in a statement.

Added Kan, "Now at almost the half-way mark of 2019, we have generally seen a stronger purchase market than last year, despite still-tight existing inventory and insufficient new construction."

© 2019 Thomson/Reuters. All rights reserved.

   
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U.S. mortgage applications climbed last week, led by a pickup in refinancing requests, as some home borrowing costs fell to their lowest levels since September 2017, the Mortgage Bankers Association said on Wednesday.
mortgage, applications, loan, rates
226
2019-22-26
Wednesday, 26 June 2019 11:22 AM
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