Mortgage Rates Edge Down

Fixed mortgage rates were largely unchanged this week, inching down slightly to remain near their all-time lows, according to the weekly rate survey by Freddie Mac.

Average rates on standard 30-year fixed-rate mortgages were down two basis points to 3.32 percent with 0.7 points in fees and discounts. Fifteen-year fixed-rate loans, often used in refinancing, were down a single basis point to an average of 2.66 percent with 0.6 points paid in fees and discounts.

On adjustable rate mortgages (ARMs), initial rates on 5-year Treasury indexed hybrid ARMs ticked upward to 2.70 percent, a single basis point up from last week’s 2.69 percent, with 0.6 points in fees and discounts.

Refinance demand rises

The continued low rates appear to be generating interest among homeowners seeking to refinance their mortgages. The Mortgage Bankers Association reported Wednesday that refinance applications were up a seasonally adjusted 8 percent last week and are at their highest level in two months.

Applications for home purchase mortgages were up by 1 percent, seasonally adjusted, and were running 9 percent ahead of the same week on year ago.

Refinancing made up 84 percent of all mortgage applications last week, according to the MBA, somewhat higher than the approximately 80 percent level that has been typical as rates have trended downward in recent years and up two percentage points from the week before. Refinance applications submitted under the HARP federal program for low-equity and underwater homeowners made up 29 percent of all refinances sought, up from 27 percent the previous week.

First published at: http://www.mortgageloan.com/mortgage-rates-edge-down-9317