Falling interest rates have resulted in increased demand for mortgages.
The refinancing field has seen a huge increase in demand as the 15-year fixed-rate mortgage fell to its lowest level in more than 30 years, according to the Mortgage Bankers Association’s weekly survey.
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General interest in obtaining a mortgage increased as demand for applications increased 5.7% from the previous week.
“The 10-year Treasury yield fell last week as investors worried about the increase in the number of COVID-19 cases and the downside risks to the current economic recovery,” said Joel Kan , associate vice president of economic and industrial forecasting at MBA. “Refinancing requests surged as the 30-year fixed mortgage rate fell to its lowest level since February 2021, and the 15-year rate fell to another all-time low dating back to 1990.”
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“Refinancing for conventional loans has increased by more than 11%. With over 95% of refinancing requests for fixed rate mortgages, borrowers are looking to get a lower rate for the life of their loan, ”Kan added.
The buying index fell 2% for a second consecutive weekly decline as potential buyers continued to be put off by extremely high home prices and increased competition.
Average contractual interest rate for a 30-year mortgage increased from 3.11% to 3.01%
The survey covers over 75% of all retail residential mortgage applications in the United States and has been conducted weekly since 1990.