As mortgage rates remained becalmed this week, both families seeking to purchase new homes in Philadelphia and elsewhere and home owners moved to take advantage of steady low rates. Both new purchase loan applications and refinancings rose in the week ended Oct. 21, according to this week’s Weekly Mortgage Application Survey from the Mortgage Bankers Association. Total application volume rose 4.9% on a seasonally adjusted basis. New purchase loan applications climbed a seasonally adjusted 6.4%, and refinancings rose 4.4%.
While refinancings still account for the lion’s share of all mortgage applications, as they have for at least a year, they did lose a bit of market share this past week. The drop, though, was insignificant – 0.3 percentage point. Conditions remain highly favorable, however, for those in the market to buy homes, as mortgage rates remain near their all-time record lows set last month. If you are in the market for a loan, you are still likely to find attractive rates, and an experienced mortgage broker can make the application process easier.
Here are the national average mortgage rates on this week’s weekly surveys. Unless otherwise noted, rates are for 80% loan-to-value ratio mortgages and assume good credit.
Mortgage Bankers Association – Weekly Mortgage Applications Survey, week ending Oct. 21
30-year fixed-rate conforming loan: 4.33%, unchanged, with 0.47 points, -0.01 point
30-year fixed-rate jumbo loan: 4.68%, +4 points, with 0.42 points, -0.03 point
30-year fixed-rate FHA-guaranteed loan: 4.11%, -1 point, with 0.61 points, +0.08 point
15-year fixed-rate loan: 3.62%, +1 point, with 0.45 points, +0.02 point
5/1 adjustable-rate loan: 3.11%, +3 points, with 0.5 points, +0.02 point
Bankrate.com: Week ending Oct. 27
30-year fixed-rate loan: 4.33%, -5 points
15-year fixed-rate loan: 3.57%, -1 point
5-year ARM: 3.22%, -2 points
Loans this week averaged 0.42 points.
Freddie Mac: Primary Mortgage Market Survey®, week ending Oct. 20
30-year fixed-rate loan: 4.10%, -1 point, with 0.8 points
15-year fixed-rate loan: 3.38%, unchanged, with 0.7 points
5-year ARM: 3.08%, +7 points, with 0.5 points
1-year ARM: 2.9%, -4 points, with 0.6 points
One basis point equals one hundredth of one percent. One discount point represents one percent of the total value of the mortgage, paid as interest up front.
The announcement this week of a bailout plan to shore up the euro by European finance ministers may ultimately lead to a rise in mortgage rates as the removal of uncertainty sends investors back into the euro bond markets and away from U.S. government debt. Any upward pressure from Europe, however, is likely to be tempered by the Federal Reserve’s ongoing program of purchasing long-term Treasury bonds and mortgage-backed securities in order to drive down long-term interest rates.
Tags: adjustable rate mortgages, FHA Mortgage, fixed rate mortgages, Getting a mortgage, mortgage rates
Until the job market continues, these low rates mean nothing for the average homeowner
Comment by CarAccidentLawyer — November 2, 2011 @ 7:53 pm