As per the MBA’s most recent survey (opens in new tab), refinancing accounted for over 60% of all mortgage application activity last week, with total demand growing by more than 5% compared to the previous seven days. Taken against the same period last year, refinance applications were up by 163%, underlining that market conditions are currently favorable for those looking to review their mortgage with one of the best refinance lenders.
Learn more: Best home equity loans
Drop it like it’s hot
The jump in refinance demand can largely be attributed to a weekly drop in interest rates, which saw the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances down to 3.90% from 3.99% – its lowest level since August. The average rate for a 15-year fixed-rate mortgage also decreased, falling to 3.35% from 3.43%, while rates for mortgages backed by the FHA and those with jumbo loan balances also fell. The MBA’s Associate Vice President of Economic and Industry Forecasting, Joel Kan, put the drops down to uncertainty surrounding economic growth. “U.S. Treasury rates moved sharply lower last week, as data showing weakness in the services sector was a sign that slowing economic growth is not confined to the manufacturing sector. This in turn caused a flight to safety by investors, resulting in mortgage rates dropping across the board,” he commented. The feel good factor wasn’t limited to refinancing, either, with the MBA’s Mortgage Credit Availability Index noting (opens in new tab) a 0.9% weekly increase in available credit. Purchase applications remained stable, falling by 1% week-on-week but up by 10% compared to 2018. More mortgage guides: Best debt consolidation companies 2022: A single loan to cover multiple debt repayments Best debt settlement companies 2022: Services to relieve personal debt Best payday loans online 2022: Trusted lenders and services Best refinance mortgage companies 2022 Best mortgage lenders 2022 Best credit repair services 2022 Best auto loans 2022: Get the best rates, even with bad credit Best personal loans online 2022: Find the perfect loan for your credit Best reverse mortgage companies 2022: Home equity loans for the over 60s Best home equity loans and HELOC lenders 2022
What type of mortgage should I get?Best mortgages for bad creditBest reverse mortgages
