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IPFS News Link • Economy - Economics USA

Weekly Mortgage Refinances Surge 26% As Rates Tank

• Zero Hedge - Tyler Durden

Now that's a way to go out!

Americans are rushing to their lenders as rates plunge over the last several weeks, causing refinance volumes to spike and total mortgage application volume to go with it. While refinances were up 26%, mortgage application volume was up 15.1%. 

The average contract interest rate for 30-year fixed-rate mortgages with balances of $510,400 or less decreased to 3.57% from 3.73%, with points decreasing to 0.26 from 0.27 for loans with a 20% down payment, according to CNBC.

Now, rates have fallen even more, prompting the surge in refinances, which are up 224% from last year. Last year, the average rate was at 4.67%.

Mike Fratantoni, MBA's senior vice president and chief economist said:

 "The 30-year fixed rate mortgage dropped to its lowest level in more than seven years last week, amidst increasing concerns regarding the economic impact from the spread of the coronavirus, as well as the tremendous financial market volatility. Given the further drop in Treasury rates this week, we expect refinance activity will increase even more until fears subside and rates stabilize."


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