People wait to visit a home for sale in Floral Park, Nassau County, New York.
Wang Ying | Xinhua News Agency | beautiful images
Record low interest rates on both larger loans and low prepayment increased demand for mortgages last week. Total mortgage applications were up 3.8 percent from the previous week, according to the Mortgage Bankers Association̵7;s seasonally adjusted index.
Demand was driven by refinances, up 6% on the week and 88% higher annually. Interest rates on jumbo loans, FHA loans, and 15-year fixed loans set record lows, while the most common loan rates, 30-year fixed, have not really changed.
The average contract rate for 30-year fixed-rate mortgages with matching loan balance ($ 510,400 or less) increased to 3.01% from 3.00%, with a score of zero, 38 from 0.35 (including principal) for loans with a 20% off payment.
Potential home buyers are still pulling in despite low interest rates. Home mortgages are down 1% for the week but 25% higher annually. Demand for mortgages has declined steadily over the past month, as home prices set new record highs and supplies for sale remain extremely scarce.
Joel Kan, MBA economist, said: “After a period of strong growth in purchase applications, activity fell for the fifth time in six weeks, but has increased annually for six consecutive months.” . “2020 generally continues to be a strong year for the housing market.”
Mortgage rates have stabilized considerably over the past few weeks, even higher than the bonds they have tracked historically. Whatever the election outcome, it seems they will not change the rates significantly.
Matthew Graham, CEO of Mortgage News Daily said: “While we are unlikely to notice a big response this time around, it remains the biggest potential market driver since March. , ”Said Matthew Graham, Managing Director at Mortgage News Daily. “Remember that if the market knew that rates were going to go higher after the election, they were there. Traders always do their best to get the spot for whatever they think they can. know about the future. “