Mortgage Refinance
Mortgage Refinancing Surge Since September – Low Mortgage Refinance Rates Spur Apps
Zillow.com reports in a press release this week refinance applications are up significantly since September spurred by historically low rates. 30 year fixed mortgage refinance rates below 5 percent are credited with boosting refinance application volume. Despite a up to $8,000 tax credit for new home buyer’s securing financing with an FHA loan mortgage refinance applications make up over 50 percent of all loan applications.
The Mortgage Banker’s Association said this week mortgage applications declined over 16 percent as 30 year fixed mortgage rates crept up closer to 5 percent at par. Mortgage refinancing is down significantly in quarter 3 of this year as the extended period of low interest rates has allowed most who qualify to refinance by now. Mortgage purchase applications have steadily increased throughout the year.
Mortgage Refinance Rates
FreeRateUpdate.com research of wholesale mortgage lender’s refinance rates shows after a 1/4 percent increase mortgage refinance rates have held steady for over 2 weeks. 30 year fixed refinance rates are at 4.875 percent at par. 15 year fixed refinance rates are at 4.375 percent at par. 5/1 ARM refinance rates are as low as 3.75 percent at par. Par rates are the lowest available interest rates without the requirement of additional points and fees to be paid by the borrower, also known as a buy down. The 7 year treasury auction, which followed 2 and 5 year treasury auctions earlier in the week which were met by strong investor demand, fielded relatively weak results not helping to lower mortgage rates Thursday. Friday was a great day for mortgage rates as rising RMBS prices drove lender’s to reprice favorably stabalizing 30 year fixed mortgage rates under 5 percent. The 10 year treasury yield, a leading indicator for 30-year fixed-rates finished the week at 3.39.
Mortgage Refinance Rates Aided by $112 Billion Government Debt Auction this Week.
Mortgage refinance rates will be aided by a record 112 billion dollars of debt to be auctioned by the government this week. Treasuries, which move the opposite bond prices, tend to descend during big auction weeks on high demand. The 10 year treasury yield is the leading indicator for 30 year fixed mortgage rates. Fueled by the TALF program, in which the government buys Residential Mortgage Backed Securities, and big treasury debt auctions drawing high demand mortgage refinance rates have dropped to 3 month lows.Current Mortgage Refinance Rates
Mortgage refinance rates are as low as 4.875 percent going into this week, fixed for 30-years at par. Par rates include normal points and fees only. Par rates DO NOT include additional points known as buy down or discount points. To qualify for a mortgage refinance at 4.875 percent fixed for 30 years lenders require up to 3 years of income documentation, proof of liquid assets totaling 6 months mortgage payments, excellent credit, and at least 20 percent equity in the property.
Mortgage Refinance - Less than 20 Percent Equity
Those homeowners looking to take advantage of record low rates who do not have at least 20 percent equity in their home are turning to FHA loans. FHA refinancing allows loan to values of up to 125 percent of the property value. FHA streamline refinance is an option for those currently in FHA loans in which a mortgage refinance is completed in days with little to no documentation required.
Mortgage Refinance Rates Down Again – Mortgage Refinance Apps Up
The 10 year treasury yield, regarded as the best indicator for 30 year fixed mortgage refinance rates, has declined 5 straight weeks . The yield matched it’s lowest level in 2 months Friday when for a moment it dipped to 3.295 before rising to 3.343 where it closed.
Mortgage Refinance Rates Last Week
Freddie Mac reported conforming 30 year fixed mortgage rates averaged 5.07 percent Monday through Wednesday of last week. A mortgage refinance at a loan amount of $200,000 fixed for 30 years at 5.07 percent is $1,082.22 principal and interest. Our research of wholesale lender’s mortgage refinance rates throughout last week showed as low as 4.875 percent available, with normal points and fees, for the entire week. Borrowing costs were least expensive Friday mid day when mortgage refinance rates neared 4.75 percent fixed for 30 years.
Mortgage Refinance Applications Up
Mortgage refinance applications sky rocketed up 23 percent last week according to the Mortgage Banker’s Association. The increase in mortgage refinance applications is credited to lower mortgage refinance rates.
Despite the higher volume of mortgage refinance applicants mortgage refinance has been hampered by declining home values, an inefficient but newly required appraisal procedure, lower average American credit scores, unemployment, and of course strict underwriting guidelines.
