Mortgage activity jumps as mortgage rates fall
Application activity up, rates down
Mortgage activity spiked week-over-week as mortgage rates slid, the Mortgage Bankers Association (MBA) said in its weekly mortgage report yesterday.
According to the MBA’s Weekly Mortgage Applications Survey for the week ending September 7, 2012, mortgage activity – measured by application activity – rose 11.1 percent on a weekly basis. All results reported by the MBA for this week include an adjustment for the Labor Day holiday.
The MBA’s Refinance Index increased 12 percent week-over-week, while its Purchase Index increased 8 percent in the same time frame.
Mortgage rates continue to fall
According to the MBA’s data, all five loan types surveyed saw a drop in average mortgage rates week-over-week.
Average rates for 30-year fixed mortgages (those with conforming loan balances of $417,500 or less) dropped to 3.75 percent after averaging 3.78 percent the previous week.
Two other 30-year fixed mortgage types also experienced average interest rate decreases.
Jumbo (those with jumbo loan balances greater than $417,500) 30-year fixed mortgages fell to an average rate of 4.00 percent from 4.05 percent the previous week, while FHA-backed 30-year fixed mortgages decreased from 3.54 percent to 3.50 percent on a weekly basis.
In addition, 15-year fixed mortgages saw a decrease to 3.07 percent after coming in at a 3.10 percent average one week earlier.
Meanwhile, average interest rates for 5-year adjustable-rate mortgages (ARMs) fell slightly to 2.63 percent from 2.64 percent the previous week.
The total amount of mortgage activity associated with refinancing increased to 80 percent of total mortgage applications, up from the previous week’s 79 percent mark.