Mortgage rates have fallen to their lowest levels since the start of summer and those rates have resulted in an increased number of people refinancing their homes. During the week that ended on October 25, applications for mortgage refinancing increased as did the number of applications for home purchases.
According to the Mortgage Bankers Association’s Market Composite Index, which is designed to provide an accurate measure of mortgage loan application figures, there has been a 6.4% increase last week from the previous week on a seasonally adjusted basis. On an unadjusted basis, the figure was up 6 percent from the week that ended October 18.
When looking at the Purchase Index, the unadjusted numbers climbed 2 percent from the week before, but remained 0.1 percent down from that same week during the previous year. Overall, these figures are good for the housing industry and mortgage banking professionals. The numbers actually show that refinancing figures have climbed back to their early summer levels.
Here are some of today’s rates from the larger, more popular lenders:
Wells Fargo – The 30-year fixed rate conforming loan sets at 4.250% while an FHA backed 30-year fixed rate loan sets at 4.00%. The 15-year fixed rate conforming loan sets at 3.375%. A 5-year ARM rounds out the group at 2.875%.
Citibank – The 30-year fixed rate conforming loan varies from 4.125% to 4.250% while a 15-year fixed rate conforming loan ranges from 3.375% to 3.500%.
US Bank – For a 30-year fixed rate conforming loan, the rate varies from 4.00% to 4.25% while an FHA backed 30-year loan ranges from 3.750% to 3.875%. A 15-year fixed rate conforming loan varies from 3.125% to 3.375%. Rounding out the group is the 5-year ARM from 2.625% to 2.750%.
Bank of America – The 30-year fixed rate mortgage sets at 4.125% while a 15-year fixed rate loan is at 3.375%. A 5-year ARM is at 3.25%.
Falling mortgage rates have really given the mortgage banking industry plus the housing industry the boost they need. Now that the government shutdown has ended, rates dropped again. The Federal Reserve has decided not to begin tapering yet because they need time to assess the economic impact of the government shutdown. The shutdown lasted two-and-a-half weeks and left more than 800,000 people furloughed from their jobs.
In the meantime, there seems to be no other major concerns that would result in major rate fluctuations. While mortgage rates remain at historic lows, many people are scrambling to refinance or lock in rates for purchases. Housing prices have increased as there are not enough houses to meet the demand. Experts expect the number of new builds to increase in the coming months as rates stay low. The housing industry is expected to continue its recovery from the financial crisis and recession. In many areas, home prices are nearing their levels right around the time of the housing boom of 2006.
Disclaimer: The advertised rates were submitted by each individual lender/broker on the date indicated. Rate/APR terms offered by advertisers may differ from those listed above based on the creditworthiness of the borrower and other differences between an individual loan and the loan criteria used for the quotes.
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