Current mortgage rates are good for home owners, sellers, and buyers. Home owners that do not wish to sell but may have purchased using an adjustable rate mortgage now have the opportunity or refinance into a fixed rate loan at a very reasonable rate. Sellers may not realize the gains of years past but as more buyers enter the market the competition decreases. Low rates accompanied by stable real estate prices and plenty of inventory provide buyers with a great opportunity.
The Mortgage Bankers Association’s weekly survey of mortgage application activity rose 8.8 percent for the week ending Nov. 3. Volume rose to 620.9, up from 570.8 one week earlier.
The Refinance Index increased by 11 percent to 1897.9 from the previous week, and the Purchase Index rose 7.1 percent to 402.2.
The refinance share of mortgage activity increased to 46.3 percent of total applications from 45 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 26.4 percent of total applications from 25.9 percent the previous week.
30-Year Rates Unchanged
Meanwhile, the average contract interest rate for 30-year fixed-rate mortgages remained unchanged at 6.24 percent, with points decreasing to 1.08 from 1.09 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.96 percent from 5.94 percent, with points decreasing to 0.97 from 1.03 for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 5.89 percent from 5.93 percent, with points decreasing to 0.8 from 0.84 for 80 percent LTV loans.
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