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MBA: Home Refinancing Hits 7-Month High as Mortgage Rates Slip

MBA: Home Refinancing Hits 7-Month High as Mortgage Rates Slip
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Wednesday, 14 June 2017 10:27 AM

U.S. applications to refinance an existing home climbed to a near seven-month peak last week as 30-year mortgage rates fell for a fourth straight week, the Mortgage Bankers Association said on Wednesday.

The Washington-based industry group said its seasonally-adjusted index on refinancing rose 9.2 percent from the prior week to 1,494.8 in the week of June 9.

This was the strongest level since 1,754.2 in the Nov. 18 week, Reuters reported.

Meanwhile, mortgage application volume rose 2.8 percent last week, CNBC reported. The Mortgage Bankers Association's seasonally adjusted weekly index remains 12 percent lower compared with a year ago, when rates were slightly lower.

Refinance volume, however, is nowhere near where it was a year ago – 27 percent lower — because rates were even lower last year, and so many people thought that was their last chance to take advantage before rates went up, CNBC reported.

"From a borrower perspective, rates held steady at seven-month lows last week providing some borrowers an opportunity to refinance," Joel Kan, an MBA economist, told CNBC.

"Over the last two weeks refinance applications have increased 13 percent and the average loan size increased to its largest since September 2016, reflecting the tendency for jumbo borrowers to be more sensitive to rates than those with smaller loan balances."

The rate on a 30-year fixed rate mortgage fell to 4.13% from 4.14%, including points and fees for the week ended June 9, according to Mortgage Bankers Association's latest weekly survey. Rates are now at the lowest level since late last year, Barron's reported.

Mortgage applications increased 2.8% from one week earlier. Refinancings jumped by 9 percentage points and are also now at a level last seen late last year.

Refinancings took up a greater share of overall applications -- 45.4% of total applications, up from 42.1% percent the previous week, the MBA reports.

(Newsmax wire services contributed to this report).

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U.S. applications to refinance an existing home climbed to a near seven-month peak last week as 30-year mortgage rates fell for a fourth straight week, the Mortgage Bankers Association said on Wednesday.
MBA, Home, Refinancing, Mortgage, Rates
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2017-27-14
Wednesday, 14 June 2017 10:27 AM
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