Mortgage Activity Jumps as Rates Hit Another Low
Mortgage activity is surging once again, with overall applications up 6.8% from last week. According to the latest data from the Mortgage Bankers Association, purchases were up 2% over the week, while refinances jumped 9% — marking their 12th-straight weekly increase.
Refinances accounted for an almost 66% share of all mortgage applications. That’s their highest level since May.
In other good news, mortgage rates hit another all-time low. The average rate on 30-year, fixed-rate loans fell to 3.06% — down from 3.14% last week. Rates on FHA loans dropped to 3.23%.
“Mortgage rates fell across the board last week, as investors grew less optimistic of the economic rebound given the resurgence of virus cases,” said Joel Kan, vice president of economic and industry forecasting at MBA. “Loan types such as the 30-year fixed, 15-year fixed, and jumbo all reached survey lows.”
More in mortgage and housing news
- It seems credit standards are loosening a bit. According to the latest Mortgage Credit Availability Index from MBA, mortgage credit availability increased in July, rising by 1.5%. It’s the first time in eight months that mortgages have gotten easier to come by.
- Mortgage delinquencies hit their highest point in over five years in May. According to CoreLogic, the overall national delinquency rate was 7.3% for the month — its highest point since 2014. It also jumped 1.2% over April.
- The share of mortgage loans in forbearance dropped to 7.44% this week, down from 7.67% last week. About 3.7 million homeowners are still on a forbearance plan.
- Loan originations on multifamily and commercial real estate have seen a steep drop in recent months. According to MBA data, commercial and multifamily loans decreased 48% in just 2020’s second quarter alone.
- Data from ATTOM shows that Americans’ home equity is increasing. Over 15 million homeowners are currently equity-rich — or about 27.5% That’s a jump from 26.5% the previous quarter.
This week in mortgage rates
Mortgage rates decreased on all loan products this week, according to MBA’s survey.
Here’s a look at how rates shook out for the week:
- All 30-year, fixed-rate loans: 3.06%, 0.33 points
- Jumbo 30-year, fixed-rate loans: 3.40%, 0.31 points
- FHA 30-year, fixed-rate loans: 3.23%, 0.33 points
- 15-year, fixed-rate loans: 2.67%, 0.35 points
- 5/1 ARMs: 3%, 0.30 points
Check back here next week for the most up-to-date mortgage rates.
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