The Mortgage Bankers Association's Weekly Applications Survey revealed rates for a 30-year fixed conforming loan and jumbo loan were unchanged last week as compared to the week before. Loans that are backed by Federal Housing Administration (FHA) and 15-year fixed rate mortgages edged up just a bit.
The Mortgage Bankers Association VP of Research and economics, Lynn Fisher appeared on CNBC and explained that lower rates for mortgages have resulted in a recent up tick in refinance activity. Ms Fisher was quoted as saying, “As rates declined over the past few weeks, refinance activity picked up in terms of share and volume in the most recent week's data,” She added, “The refi share, at 53 percent, was the highest refi share since April and the refi index increased 3.1 percent to reach its highest level since May.”
While the demand for refinancing was up, purchase demand to buy homes for sale and condos for sale, however, decreased, dropping 3 percent from just one week earlier. It is important to note that demand for purchase applications (a reliable source for predicting future home-sales) is currently twenty percent higher than it was during the same period last year. More about this story here..