Refinance applications up 22 percent

New York /
Jul.July 18, 2012 09:00 AM

Mortgage rates have been on a downward spiral for some time, and last week the trend finally appears to have spurred activity. Mortgage applications surged 16.9 percent for the week ending July 13, according to weekly survey data released today by the Mortgage Bankers Association. The growth came from applications for refinances, which jumped 22 percent from the previous week to account for 80.1 percent of all mortgage activity, up from 77 percent. But applications for purchases actually stumbled 0.1 percent.

“Refinance application volume increased last week to near-peak levels for the year as mortgage rates dropped to a new low, driven down by growing concerns about the health of the U.S. economy,” said Mike Fratantoni, the association’s vice president of research and economics. “Applications for HARP refinance loans accounted for 24 percent of refinance activity last week, in line with the HARP share for the past few weeks.”

The average interest rate for 30-year fixed-rate mortgages with conforming balances fell 5 basis points to 3.74 percent, while similar mortgages for jumbo loans decreased to 3.98 percent from 4.05 percent. Federal Housing Administration-backed 30-year fixed-rate loans had an average interest rate of 3.55 percent, down from 3.63 percent. Interest rates for 15-year fixed-rate mortgages fell three-hundredths of a percentage point to 3.12 percent. All four rates are the lowest in the history of the MBA survey. — Adam Fusfeld


Related Articles

arrow_forward_ios
Mortgage requests, refinancings continue to drop
Mortgage requests, refinancings continue to drop
Mortgage requests, refinancings continue to drop
1440 Broadway and One Park Avenue (Google Maps, Vornado)
These were the largest Manhattan real estate loans in March
These were the largest Manhattan real estate loans in March
Better CEO Vishal Garg and SoftBank CEO Masayoshi Son (Better.com, Getty)
Better.com lands $500M investment from SoftBank
Better.com lands $500M investment from SoftBank
An index tracking applications for mortgages to purchase homes decreased 5 percent. (iStock)
Frenzy ending? Mortgage requests fall 5%
Frenzy ending? Mortgage requests fall 5%
(iStock/Illustration by Kevin Rebong for The Real Deal)
March madness: Homes sold faster than ever last month
March madness: Homes sold faster than ever last month
February were 10.4 percent higher than last year. (iStock)
Home price growth hits 15-year high
Home price growth hits 15-year high
(iStock/Illustration by Kevin Rebong for The Real Deal)
Foreclosures and evictions could be halted for rest of 2021
Foreclosures and evictions could be halted for rest of 2021
CFPB acting director Dave Uejio (CFPB, iStock)
Mortgage lenders must prevent “tidal wave” of avoidable foreclosures: CFPB
Mortgage lenders must prevent “tidal wave” of avoidable foreclosures: CFPB
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...