30-year fixed mortgage rates fall, mortgage applications rise

Mortgage rates have shown declines for much of the past two months and the most recent data from the Mortgage Bankers Association (MBA) shows more of the same.

The latest Weekly Mortgage Applications Survey from the MBA – for the week ending June 10, 2011 – revealed yet another decrease for average 30-year fixed mortgage rates. The average contract interest rate for 30-year fixed mortgages, 4.51 percent, is a decrease from 4.54 percent the previous week and is the lowest 30-year rate seen since November 19, 2010, the MBA said.

“Mortgage rates have declined for 8 of the past 9 weeks. Coming off of the Memorial Day holiday, refinance application volume increased significantly, as borrowers jumped to lock in the lowest mortgage rates since last November,” Michael Fratantoni, MBA’s Vice President of Research and Economics, said in a statement.

In this latest weekly survey, average rates for 15-year fixed mortgages remained stable at 3.67 percent.

Mortgage applications see a big jump

The latest MBA survey also revealed that mortgage applications overall rose 13 percent week over week. In addition, the refinance share of mortgage application activity increased to 70.0 percent of overall applications from 67.3 percent the previous week.

Despite this increase in mortgage refinance activity, Fratantoni mentioned that overall refinance volume is currently below what was seen in November 2010.

“The volume of refinance applications still remains 28 percent below levels seen at that time [November 2010], as borrowers with an incentive to refinance remain constrained from doing so by lack of equity in their homes,” Fratantoni said.

Posted in: Mortgage Rates, Refinance Rates

Mortgage Rates News: This article was published on 6-16-2011 at 8:34 am.

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