Mortgage refinance activity up due to lower interest rates
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Print The refinance share of mortgage activity increased to 71.5% of total mortgage applications, up from 66.1% the previous week. The refinance share of mortgage activity is the highest it has been since May 2009, when the 30-year fixed-rate mortgage rate was around 4.7%, close to historical lows, according to the Mortgage Bankers Association weekly survey for November 6.
The Refinance Index increased 11.3 percent from the previous week, according to the Mortgage Bankers Association.
Mortgage loan applications were up 3.2% compared to the previous week.
The average interest rate for 30-year fixed-rate mortgages decreased to 4.90% from 4.9%, with points increasing to 1.03 from 1.01. The 30-year fixed-rate is the lowest it has been since May 2009. While the average interest rate for one-year adjustable rate mortgages increased to 6.85% from 6.83%, with points decreasing to 0.29 from 0.31.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.5% from 6.1 percent of total applications from the previous week.
The seasonally adjusted Purchase Index decreased 11.7% from one week earlier. The purchase index is at its lowest level since December 2000.
