“We saw significant rate volatility last week surrounding the [Federal Open Market Committee] meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance”, explains Mike Fratantoni, chief economist for the MBA, in a statement.
After falling 7.0% the previous week, total mortgage application volume increased 13.9% on an adjusted basis during the week ended September 18, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
The refinancing portion of mortgage applications soared 18 per cent, while applications for the purchase of a home increased a solid 9 percent from one week earlier to its highest level since June 2015.
In the ARM arena, 5-year loans are published at 3.04% at PHH Mortgage with a starting April of 3.194% which will change as interest rates adjust. But the share of refinance loans to low- and moderate-income borrowers increased slightly from 20 percent to 21 percent. The USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior.
WASHINGTON (AP) – The Commerce Department says orders for long-lasting USA’ manufactured goods dropped 2 percent in August, following a 1.9 percent increase in July.
The average rate for a 15-year FRM was 3.31%, down from 3.33%.
The 30-year fixed rate remained unchanged over last week, even though there was substantial intra-week fluctuation, he added.
Last week, the Federal Open Market Committee opted not to raise the short-term federal funds rates.
Nervous investors typically flock to safe-haven USA government bonds, to which mortgage rates are closely related. 7/1 Adjustable Rate Mortgages have been listed at 2.625% today with a starting April of 3.141%.
Data released by the Bank of England and Financial Conduct Authority (FCA) has found mortgage rates are at their lowest ever level. Just 10 percent of respondents predict that mortgage rates will rise in the next seven days.
A rate hike by the Fed could bring higher rates for home loans.