Refinancing Fuel Most Mortgage Activity
Refinancings Fuel Most Mortgage Activity Mortgage applications decreased last week from the previous week’s frenzied pace, but business remained brisk in response to low rates.The surge in mortgage applications began early Thanksgiving week, shortly after the Federal Reserve announced it would purchase up to $100 billion in direct debt of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, along with up to $500 billion of mortgage-backed securities backed by Fannie, Freddie, and Ginnie Mae.Last week, mortgage application volume decreased 7.1 percent to 796.8 from 857.7 the previous week on an adjusted basis, according to the Mortgage Bankers Association survey.On an unadjusted basis, the index increased 32.7 percent from the previous week and was up 2.2 percent compared with the same week a year ago.Most of the increase was in applications to refinance with the refinance share of mortgage activity rising to 73.7 percent.Mortgage rates continued to decline from the previous week:- 30-year fixed-rate mortgages decreased to 5.45 percent from 5.47 percent
- 15-year fixed-rate mortgages decreased to 5.09 percent from 5.13 percent
- 1-year ARMs increased to 6.76 percent from 6.61 percent
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