According to the Mortgage Bankers Association, applications have increased across the board, from the 30-year fixed mortgage to refinances. Primarily lower rates have provided an incentive for borrowers to act.
The refinance index rose by 43% from the prior week. And the unadjusted purchase index increased by 51% from the prior week.
It appears that homebuyers wasted no time jumping into the market within the first week of 2020. According to the Mortgage Bankers Association, purchase activity was 8% higher than just one year ago. The Purchase Index increased across all levels to their its point since October 2009.
Fast Facts
- The refinance share of mortgage activity increased to 62.9% from last week’s 58.9%.
- The adjustable-rate mortgage share of activity increased to 4.5% of total applications.
- The Federal Housing Administration’s share of mortgage apps moved forward to 12.7% from last week’s 12.2%.
- The Department of Veterans Affairs share of applications fell to 12.1% from last week’s 14.1%.
- Mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to the lowest level since September of last year, coming in at 3.87%.
- The average contract interest rate for 15-year fixed-rate mortgages fell to the lowest level since September 2019, coming in at 3.3%.
- The average contract interest rate for 5/1 ARMs increased to 3.35% from last week’s 3.19%.