Thursday, April 22, 2010

Refi's headed UP

Mortgage demand, which had recently fallen to the third lowest point since June, snapped its slump and increased 13.6 percent last week, according to the Mortgage Bankers Association.

The rally was led by a 15.8 percent increase in refinance applications and a 10.1 percent jump in purchase activity.

However, purchase applications were still off 5.2 percent compared with the same week a year ago.

The refinance share of mortgage activity increased to 60 percent of total applications, up from 58.9 percent the previous week, as mortgage rates inched back toward record lows.

“Treasury rates fell last week causing a decline in mortgage rates,” said Michael Fratantoni, MBA’s Vice President of Research and Economics, in a press release. “As a result, refinance applications picked up over the week, as some borrowers took advantage of this recent rate volatility to lock in a low fixed-rate loan.”

“Purchase applications continued to increase coming out of the Easter holiday, as we approach the end of the homebuyer tax credit, and are up modestly over last month.”

The popular 30-year fixed dropped to 5.04 percent from 5.17 percent, while the 15-year fixed averaged 4.34 percent, down from 4.45 percent.

The one-year adjustable-rate mortgage also improved, falling to 6.95 percent from 7.02 percent.

Maybe interest rates aren’t going to surge after all…

The MBA’s weekly survey covers more than half of all retail, residential loan applications, but does not factor out duplicate or rejected apps, which have surely risen since the mortgage crisis got underway.

Any questions or concerns don’t hesitate to contact me, Gene Neal your Mortgage Expert.

Tel (631) 687-3510 Ext. 101

Fax (631) 687-3513