Refinancing Up As Rates Edge Down
- Peter KingDecember 05, 2012 - MortgageLoan.com
More homeowners sought to refinance their mortgages last week, as mortgage rates on some of the most popular types of home loans edged down to all-time lows.
Applications to refinance an existing mortgage were up a seasonally adjusted 6 percent last week, the Mortgage Bankers Association (MBA) reported today. In unadjusted terms, applications were up 49 percent from the previous week, which was shortened by the Thanksgiving holiday.
HARPs over a quarter of all refinance aps
Refinancing accounted for 83 percent of all mortgage applications, up slightly from the previous week, with applications submitted under the Home Affordable Refinance Program (HARP) for low- and negative-equity homeowners accounting for 27 percent of all refinances sought. Only 3 percent of all applicants sought adjustable-rate mortgages (ARMs).
Demand for home purchase mortgages was largely unchanged last week, increasing a seasonally adjusted 0.1 percent. Coincidentally, it was down by that same amount from the same week one year ago, despite recent signs of strengthening demand in the housing market.
30-, 15-year and FHA loans set new lows
Average interest rates on three of the most commonly used types of mortgages matched or set all-time lows in the MBA survey last week. Average interest rates on 30-year fixed-rate mortgages with conforming balances ($417,500 or less) edged down a single point to 3.52 percent, tying their all-time low in the MBA survey. Borrowers obtaining that rate paid an average of 0.41 points in fees and discounts.
A new record low was set for 15-year fixed-rate mortgages, which dropped to an average of 2.86 percent with 0.27 points, down from 2.89 percent the week before. Average rates on 30-year fixed-rate FHA mortgages dropped to 3.34 percent, matching their all-time low, down from 3.36 percent previously, with an average of 0.62 points.
Jumbos, ARMs increase
The average rate on 30-year fixed-rate jumbo loans (balances greater than $417,500) increased to 3.79 percent with 0.32 points paid, up from 3.75 percent the week before. Initial rates on 5/1 ARMs rose to 2.62 percent with 0.40 points, up from 2.60 percent previously.
All rates are based on mortgages with an 80-percent loan-to-value ratio. The weekly MBA survey covers three-quarters of all U.S. residential mortgage applications.
First published at: http://www.mortgageloan.com/refinancing-rates-edge-down-9309
|30 yr fixed||3.84|
|15 yr fixed||3.09|
Rates may contain points
Browse Mortgage Rates
Browse our comprehensive guides to popular topics related to mortgage and personal finance.