Home Mortgage Refinancing Applications Surge
ByThe Mortgage Bankers Association released a report indicating that loan applications overall increased 14.6% from a week earlier, behind by a 21% increase in applications for home refinancing. MBA announced today that refinance activity spiked significantly last week on a seasonally adjusted basis. This was the first increase in loan activity in five weeks. Record low mortgage refinance rates continue to lure homeowners to refinance into a lower and more affordable loan payment.
According to MBA’s vice president of research and economics, Michael Fratantoni, “After five weeks of steadily declining rates to yet another new low, borrowers who had been on the fence jumped off, which factored into refinance activity surging more than 20%.”
Fixed Home Mortgage Refinance Rates Available at 3.75%
Home loan applications were stimulated last week with homebuyers making a move before HUD tightened the FHA guidelines that went into effect October 4th. Fratantoni continued, “The theory was confirmed by the fact that this week FHA home loan applications fell back to a level closer to the average seen over the past four months.”
Mortgage Refinance Activity Surges! The four-week moving average for home mortgage refinancing applications, which smoothes the volatile weekly figures, was up 3 percent. The purchase index average is down 0.3 percent while the refinancing index is up 3.9%.
The home refinance share of mortgage activity increased to 83% of total loan applications from 80% the previous week. This week’s loan application report revealed that this was the most significant market-share for mortgage refinances since back in January of 2009.
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