Another record low mortgage rate just caused mortgage demand to jump

In this Tuesday, July 17, 2012 photo, a single-family home is offered for sale in the Hollywood area of ​​Los Angeles. The average rate on fixed mortgages has fallen again this week, giving buyers greater incentive to enter the recording housing market. Mortgage buyer Freddie Mac said on Thursday, July 19, 2012, that the average rate on a 30-year loan fell to 3.53 percent. (AP Photo / Damian Dowargens)

Damian Dovargens

Mortgage interest rates have hit record lows a dozen times this year, and last week was yet another. According to the Mortgage Bankers Association’s seasonally adjusted index, mortgage application volume has increased by 3.9% compared to the previous week.

Refinancing applications led the way, climbing 5% for the week to the highest speed since last April. Volume was 79% higher than the same week a year earlier. The refinancing share of mortgage activity increased from 69.8% last week to 71.1% of total applications.

The average contract interest rate for a 30-year fixed-rate mortgage with a debt balance ($ 510,400 or less) fell from 2.99% to 2.92% with the survey dropping to 0.37 to 0.35 (including the original fee) is. 20% down payment.

“Weekly mortgage rate volatility has re-emerged, as markets respond to the uncertainty of fiscal policy and the resurgence of Kovid-19 cases around the country,” said Joel Kahn, MBA associate of industry and economic forecasting.

According to recent calculations by Black Knight, a mortgage technology and data provider, so far this year, more than 4 million borrowers have already refinanced their home loan, yet significantly more on their monthly payments through refinancing. Can save. Today’s average mortgage rate is almost a full percentage point lower than a year ago.

Despite the sharp rise in home prices, homebuyers are also encouraged by today’s rates. Mortgage applications to buy a home increased 4% for the week and were 19% higher than the same week a year ago.

Kahn said, “Strong competition for the limited supply of homes for sale, as well as rapid house price increases, purchase applications increased for both traditional and government borrowers. In addition, purchase activity for six months The year-round level has been exceeded, ”Kahn said.

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