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.

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