Mortgage purchases and refinances ballooned this week as the typical mortgage fee fell from 2.99 p.c to 2.92 p.c for a 30-year fixed-rate mortgage, a file low for the Mortgage Bankers Affiliation’s weekly survey.
The unadjusted mortgage buy index was up 19 p.c year-over-year, whereas the refinance index was 79 p.c increased than the identical week final yr and at its highest fee since April.
“Weekly mortgage fee volatility has emerged once more, as markets reply to fiscal coverage uncertainty and a resurgence in COVID-19 circumstances across the nation,” Joel Kan, M(BA)’s affiliate vice chairman of trade and financial forecasting. “The decline in rates ignited borrower interest, with applications for both home purchases and refinances increasing on a weekly and annual basis.”
With the reported annual improve, mortgage purchases have been up yr over yr for six straight months, based on Kan.
Refinances accounted for 71.1 p.c of complete mortgage purposes final week, up from 69.eight p.c the week prior.
The typical fee for a 15-year fixed-rate mortgage additionally hit a brand new survey low of two.51 p.c, down from 2.59 p.c the week prior.