According to the Mortgage Bankers Association (MBA)'s report on mortgage application activity, mortgage applications increased by 4.6 percent week-over-week during the week ending March 27. This increase followed close on the heels of a 9.5 percent week-over-week rise the week before, indicating that spring is getting off to a strong start with respect to mortgage activity.
Those who participated in last week's application surge were in luck, as average mortgage rates were slightly lower last week than the week before. The average interest rate on a 30-year fixed-rate mortgage dropped to 3.89 percent from 3.90 percent, and the average rate for a 15-year fixed-rate mortgage fell from 3.22 percent to 3.21 percent. Although .01 percent may not seem like much of a difference, it can wind up saving borrowers hundreds to thousands of dollars over the life of the loan.
Refinancing activity is also up, with the MBA's refinance index increasing by 4 percent week-over-week and refinancing applications making up 60 percent of all new loan applications.
Mortgage industry experts were heartened by these figures, seeing in them a continuation of this year's progress toward the recovery of the U.S. housing market. This year has seen steady increases in sales of new and existing homes, which may be attributable to the year's historically low interest rates and loosening credit standards.
Lynn Fisher, Vice President of Research and Economics for the MBA, said in a statement, "This week's mortgage application survey falls right into line with recent indications that home sales – new, existing and pending – are on the rise, as is consumer sentiment."
For information about how to refinance with New Penn Financial, or to get preapproved for one of our mortgage loan options, contact us today.
Sources:
http://247wallst.com/housing/2015/04/01/mortgage-loan-rates-drop-slightly-on-30-year-fixed-loans/
http://www.cnbc.com/id/102551267
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