Mortgage rates see big weekly drop
Average rates plummet
Mortgage rates took a dive, plummeting on a weekly basis, the Mortgage Bankers Association (MBA) said in its most recent weekly mortgage report.
According to the MBA’s Weekly Mortgage Applications Survey for the week ending March 1, 2013, both fixed-rate mortgages and adjustable-rate mortgages (ARMs) saw average rates make a big drop week-over-week.
Average rates for 30-year fixed-rate mortgages dropped to 3.70 percent from 3.77 percent the previous week. These rates refer to 30-year fixed-rate mortgages with conforming loan balances of $417,500 or less, but other types of 30-year fixed mortgages saw rates drop, as well.
FHA-backed 30-year fixed mortgages dropped to an average rate of 3.47 percent from 3.54 percent the previous week, while jumbo (loan balances greater than $417,500) 30-year fixed mortgages dropped to an average rate of 3.80 percent from 3.93 percent the previous week.
Additionally, 15-year fixed mortgages fell to an average of 2.96 percent from 3.03 percent one week earlier, while 5-year ARMs fell from 2.65 percent to 2.55 percent on a weekly basis.
Mortgage activity spikes
Overall, the MBA noted, mortgage activity increased 14.8 percent week over week.
The MBA’s Purchase Index rose 15 percent on a weekly basis, while its Refinance Index saw the same week-over-week increase – 15 percent.
The percentage of all mortgage activity associated with mortgage refinancing stayed even on a weekly basis at 77 percent of overall mortgage applications.