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Mortgage Rates New Lows
According to banking experts mortgage rates have reached an all time low not seen in fifty years. This has generated a storm of applications for refinancing this week, over three quarters of all mortgage applications, up from 73% the previous week. The mortgage rate dropped following the Fed's announcement last week they will purchase mortgage backed securities. This resulted in a refinance incentive for most homeowners locked in to higher mortgage rates.
The total mortgage activity was up over 31% from the week before, and up at least eighteen percent from the same week last year. In a mortgage based on eighty percent loan to value ratio, the thirty year fixed rate fell to 4.6 percent down from 4.9 percent rate last week. The points fell to 1.13 from 1.23 for the same time frame. This is the lowest rate recorded since the Mortgage Bankers Association began keeping records in the early 1990's, and is a sampling of half of all mortgages recorded nationally.
The other major instrument, the 15 year fixed rate mortgage also dropped to just less than four and half percent down from just under four point nine percent last week. This is evidence that all fixed rate plans continue to drop.
The less popular one year ARM rate is up to 6.2 percent and applications for the adjustable rate mortgage consists of only one and a half percent of all applications. A four week running average of mortgage activity measures an overall increase of almost fourteen percent, with new purchase instruments up almost two percent, and refinancing up almost nineteen percent.
Marin Real Estate Blog
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