Mortgage refinancing increases as 15-year fixed rate hits lowest level since 1990

0

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.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

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.”

HOME PRICES ARE UP 16.6% PER YEAR IN MAY, THE MOST RECORD

“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.

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS

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.


Source link

Share.

Comments are closed.