Rates Hit New Lows Mortgage Applications Increase
According to the Mortgage Bankers Association, mortgage applications increased by 10% over last week. The survey used for these numbers ended on April 8th 2016.
The Market Composite Index measures loan applications and recorded the increase. The Refinance index also showed a 11% increase week over week. The refinancing applications have been surging for weeks.
New lower interest rates and a strong job market pushed the number to the increase. Two weeks ago mortgage applications fell and then jumped the next week. This represents a solid 24% increase over the previous year. This is the second highest level for loan applications since May 2010. Applications to refinance also increased as the 30 year contract rate decreased to its lowest level since January 2015,” said Mike Fratantoni, MBA’s Chief Economist.
The rates dropped 2 weeks ago over worries about slowing global growth despite the fact that our job market remained strong. The average interest rates for a 30 year fixed loan is 3.82%, down from 3.86%.
Matthew Graham, chief operating officer of Mortgage News Daily said “I’m getting a lot of reports from lenders about their clients who missed opportunities to lock in February, and who finally saw rates move low enough to pull the trigger,” . “The current week is still up in the air, but rates had been holding their ground through Tuesday, despite some ominous weakness in underlying bond markets.”