Housing
Falling Mortgage Loan Rates, Rising Home Prices Boost Refinancings
Published:
Last Updated:
The seasonally adjusted purchase index increased by 2% from the last report. On an unadjusted basis, the composite index also rose by 7% week-over-week. The unadjusted purchase index increased by 3% for the week and is up 12% year-over-year.
The share of refinancings increased from the previous week’s total of 75% to 76%. Adjustable rate mortgage loans now account for 4% of all applications, also unchanged from last week.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage fell from 3.60% to 3.59%. The rate for a jumbo 30-year fixed-rate mortgage decreased from 3.80% to 3.79%. The average interest rate for a 15-year fixed-rate mortgage dropped from 2.84% to 2.81%, the lowest rate in the history of the MBA survey.
The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 2.55% to 2.53%, another record low.
The rise in mortgage loan applications could reflect the very low rates now available for 15-year and 5/1 adjustable rate mortgage loans. Rising house prices also could be factoring into the rise in refinancings. As houses increase in value and loan rates remain at historic lows, refinancing becomes more attractive provided a homeowner has gold-plated credit.
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.