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The share of homeowners looking to refinance their mortgages or take out new ones continues to rise, as the typical mortgage rate has hovered in the low 6 percent range in recent months.
The Mortgage Bankers Association’s weekly index of refinanced mortgages surged 147 percent year over year this week, while its measure of new purchase loan applications was up 31 percent. New loans were also higher than they were last week, by 3 percent, though refinanced mortgages had dipped 3 percent week over week.
Refinancing applications in particular increased this year after the Federal Reserve slashed its benchmark interest rate in September and again in October. Just the anticipation of the rate cut alone, which the real estate industry had wanted for some time, triggered a drop for mortgage rates and a wave of activity.
However, home prices — and borrowing costs — remain elevated compared to recent years, which has led to an increase in foreclosure proceedings. The average mortgage rate for a 30-year loan was 6.22 percent for the week ending Nov. 6, according to Freddie Mac. While rates have dropped in recent months, they are still higher than just a few years ago.
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Last month, lenders initiated foreclosure proceedings on more than 25,000 properties across the country, a 20 percent climb compared to the same time last year, according to an analysis by Attom, a real estate data firm.
The states with the highest share of starts were: Florida (4,136); Texas (3,080); California (2,685); Illinois (1,252); and New York (1,165).
Completed foreclosures also were up, by 32 percent, year over year. One in every 3,871 housing units had a foreclosure filing last month, Attom found.
However, while foreclosure activity rose in October, Attom in its report noted that it was still below historic highs.
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