Mortgage rates continue to attract home owners into refinancing. While undocumented we feel there is a growing sentiment that rates will quickly start climbing as economic data shows strengthening. Australia fared better that the U.S. during the downturn and the Australian central bank began raising rates a week ago to head off any inflationary trend. Our next post looks at the latest information from the Federal Reserve.
Refinancing Fuels Loan ActivityLoan applications rose 8.2 percent last week on a seasonally adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey.
Most of the increase was in refinances, which rose 14.5 percent, while purchases decreased 1.8 percent. On an unadjusted basis, the purchase index decreased 3 percent compared with the previous week and was down 3.4 percent compared to the same week a year ago.
Mortgage rates declined overall:
- 30-year fixed-rate mortgages decreased to 4.97 percent from 5.04 percent.
- 15-year fixed-rate mortgages decreased to 4.33 percent from 4.53 percent.
- 1-year ARMs increased to 6.83 percent from 6.79 percent.
Source: Mortgage Bankers Association (11/04/2009)
© Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.
