The house is for sale in Oklahoma City, Photo, Friday, September 21, 2012. The average US interest rate on fixed mortgages once again hit a record low. This decline suggests that the Fed’s stimulus may be affecting mortgage rates. Mortgage buyer Freddie Mac said on Thursday, September 27, 2012 that interest rates on 30-year loans fell to 3.40 percent. This is down from 3.49 percent last week. This was the worst since long-term mortgages began in the 1950s. (AP Photo / Sue Ogrocki)
Mortgage rates hit record lows last week. This year is the second record in a few weeks on the 15th.
However, while this decline did not make a big difference to weekly mortgage applications, demand is significantly stronger than it was a year ago.
According to the Seasonally Adjusted Index of the Mortgage Bankers Association, total mortgage applications increased by 1.1% weekly.
Average contract rates for 30-year fixed rate mortgages ($ 510,400 or less) with matching loan balances have fallen from 2.90% to 2.85%, and points have fallen 20% from 0.35 (including origination fees) to 0.33. It has dropped to. payment.
“U.S. Treasury rates last week were uncertain about the outlook for additional government stimulus related to pandemics and continued Covid-19 cases across the country,” said Joel Kang, vice president of MBA. It remained low due to concerns about the increase. ” President of Economy, Trade and Industry Forecasting.
Mortgage refinancing applications are most sensitive to fluctuations in mortgage rates, increasing by 1% in a week, but 105% over the same week a year ago. At this point last year, mortgage rates were 113 basis points higher. Refinancing now can save you a lot of monthly payments for anyone who refinanced last year.
Mortgage applications to buy a home increased by 2% in a week and by 26% each year. December is usually not a good month for home sales, but demand continues to skyrocket as Americans continue to work from home. They want more space and can now work from anywhere, offering far more options for relocation.
“The number of home purchase applications has increased in both traditional and government markets, so it will be the fourth in five weeks,” Suga said. “Government purchase offers have risen to their highest levels since June for the sixth straight week, indicating that more first-time buyers are entering the market.”
First-time buyers face fierce competition for severe supply shortages at the market entry level. The number of cash-intensive investors continues to grow, and homebuilders aren’t building low-priced homes to meet demand. Low-end home prices are rising fastest, with some potential buyers on the sidelines.
Refinancing demand surges 105% annually as mortgage rates hit record lows
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