The Mortgage Bankers Association informs that aspiring homeowners are putting behind the Coronavirus scare and filing purchase mortgage applications at a level not seen over the previous decade. It comes as a bonus that the 30-year fixed loan rates are at their lowest since the MBA’s Weekly Mortgage Applications Survey began.
Purchase mortgage applications have risen for the 9th week straight. It is partly the result of soaring consumer confidence and partly due to the demand kept in leash since spring, believes Joel Kan, the Associate VP of Economic and Industry Forecasting, MBA.
Kan feels that the refinance volume is also on a rise because it is allowing homeowners to save on their monthly mortgage liabilities- and this is a considerable bonus in times of Covid-19- related economic uncertainty.
Refinance applications have more than doubled compared to the same time, last year. Compared to last week, the share of refinancing in the entire mortgage activity has shot up from 61.3% to 63.2%.
The Adjustable-rate mortgage activity has come down by nearly 10% over the last week. 30-year fixed-rate mortgages (equal or less than $510,400) have come down by 8 basis points and sits at 3.3%. A Similar mortgage with jumbo balances (equal or greater than $510,400) has fallen by 3 basis points to sit at 3.67%.
The average contract interest rate for the FHA-backed 30-year fixed-rate mortgages have come down by 5 basis points to sit at 3.33%. ‘15-year’ has fallen by 3 basis points and is at 2.8%. “5/1 ARMs” has shot up by 5 basis points and sits at 3.07%.