Tags: mortgage | refinances | rates | home | loan | mortagge

Mortgage Refinances Jump 10 Percent as Rates Lowest Since August

Mortgage Refinances Jump 10 Percent as Rates Lowest Since August
(Valentin Armianu/Dreamstime)

Wednesday, 09 October 2019 02:37 PM

Refinance demand surged, pushing total mortgage application volume up 5.2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Rate-sensitive refinance applications jumped 10% from the previous week and were 163% higher than the same week one year ago. The refinance share of mortgage activity increased to 60.4% of total applications from 58.0% the previous week.

The Market Composite Index, a measure of mortgage loan application volume, increased 5.2 percent on a seasonally adjusted basis from one week earlier. 

"U.S. Treasury rates moved sharply lower last week, as data showing weakness in the services sector was a sign that slowing economic growth is not confined to the manufacturing sector. This in turn caused a flight to safety by investors, resulting in mortgage rates dropping across the board, with the 30-year fixed rate decreasing nine basis points to 3.9 percent - the lowest level in a month," said Joel Kan, Associate Vice President of Economic and Industry Forecasting.

"As seen a few times this year, the large drop in rates caused another surge in refinance applications. The refinance index increased 10 percent to its highest level since late August, with both conventional and government refinances experiencing an upswing."

Added Kan, "Purchase activity was muted, declining almost 1 percent, but was still 10 percent higher than a year ago. Despite low rates, the cloudier economic outlook and ongoing market uncertainty may be keeping some potential homebuyers away from the market this fall."

The refinance share of mortgage activity increased to 60.4 percent of total applications from 58.0 percent the previous week. 

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.90 percent from 3.99 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.35 percent from 3.43 percent.

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Refinance demand surged, pushing total mortgage application volume up 5.2% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
mortgage, refinances, rates, home, loan, mortagge
305
2019-37-09
Wednesday, 09 October 2019 02:37 PM
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