Mortgage Rate Drops Spawn Refinance and Purchase Activity
The Mortgage Bankers Association publishes weekly results regarding a survey that covers approximately 50% of all residential mortgage activity in the US, along with average interest rates for various terms and the volume of such applications. As such, the survey is considered one of the most important in the country as it offers the clearest and most accurate insight into the current state of the US housing market as a whole.
According to the latest data from the survey, average rates for standard 30 year fixed term mortgages have declined once again this week by 6 basis points, to result in a rate of 4.17%, while the refinance application volume increased by 6% over the previous week and the purchase application volume rose 7%.
With rates across the board hovering on or around the lowest levels seen since records began, it is likely to prove a very interesting few weeks with regard to where exactly the market will go following the publishing of third quarter results.
It had initially been suggested that better than expected economic news for the end of August would have resulted in a significant shift in investor interest, ultimately beginning a steady rise in weekly mortgage rates as a result. As it stands, a myriad of global factors have instead augmented each other, keeping the rates incredibly low and on some cases pushing them down even further.
Related posts: