- Applications to refinance a home loan surged 20% last week compared with the previous week.
- This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.13% from 6.15%
- The refinance share of applications rose to 55.7%.
- Mortgage applications to purchase a home rose just 1% for the week and were 2% higher than the same week one year ago.
A steady decline in mortgage rates to two-year lows has current homeowners rushing to take advantage of potential savings.
Applications to refinance a home loan surged 20% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Demand was a stunning 175% higher than the same week one year ago.
This as the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.13% from 6.15%, with points increasing to 0.57 from 0.56 (including the origination fee) for loans with a 20% down payment. The rate was 128 basis points higher the same week one year ago, or 7.41%.
h/t general mishka