Lower interest rates led to a spike in demand for mortgages.

The refinance area saw a huge increase in demand as the 15-year, fixed-rate mortgage fell to its lowest level in more than 30 years, according to the Mortgage Bankers Association's weekly survey.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Overall interest in obtaining a mortgage increased as application demand rose 5.7% from the week before.

"The 10-year Treasury yield fell last week, as investors grew concerned about increasing COVID-19 case counts and the downside risks to the current economic recovery," said Joel Kan, MBA’s associate vice president of economic and industry forecasting. "Refinance applications jumped, as the 30-year fixed mortgage rate declined to its lowest level since February 2021, and the 15-year rate fell to another record low dating back to 1990." 

HOME PRICES SOAR 16.6% ANNUALLY IN MAY, MOST ON RECORD

"Refinances for conventional loans increased over 11%. With over 95% of refinance applications for fixed rate mortgages, borrowers are looking to secure a lower rate for the life of their loan," added Kan.

The purchase index fell 2% for a second straight weekly decline as potential buyers continue to be put off by extremely high home prices and increased competition.

CLICK HERE TO READ MORE ON FOX BUSINESS

The average contract interest rate on a 30-year mortgage fell to 3.01% from 3.11%

The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990.

Source Link:
https://www.foxbusiness.com/markets/mortgage-refis-spike-15-year-fixed-rate-hits-lowest-since-1990

[-0.739433,"negative"]

Comments

comments

Advertisement