PREMIER Finance Mortgage Refinance Application Highest Since 2009 As Rates Reach Record Lows. Activity in the mortgage sector increased sharply the end of September 2012.
Mortgage Refinance Application Highest Since 2009 As Rates Reach Record Lows
Activity in the mortgage sector increased sharply the end of last month as mortgage applications increased 16.6% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 28, 2012. Additionally the Refinance Index increased 20% from the previous week marking the highest Refinance Index recorded in the survey since April of 2009.
“Refinance application volume jumped to the highest level in more than three years last week as each of the five mortgage rates in MBA’s survey dropped to new record lows in the survey,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Financial markets continue to adjust to QE3, as the ongoing presence of the Federal Reserve as a significant buyer of mortgage-backed securities applies downward pressure on rates. Although there was a slight decline in the HARP share of refinance activity, the level of HARP volume remains steady.”
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.82 percent from 3.87 percent, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
Source: Mortgage Bankers Association