Low Rates Prompt Gain In Mortgage Activity
March 27, 2013 by UPI - United Press International, Inc.
WASHINGTON (UPI) — U.S. mortgage activity rose last week, as long-term interest rates fell slightly, the Mortgage Bankers Association said Wednesday.
The association said mortgage activity rose 7.7 percent a week after falling 7.1 percent, when long-term interest rates were headed higher.
From the previous week, the MBA’s refinancing activity index rose 8 percent, the trade group said.
Interest rates for 30-year, fixed-rate conforming mortgages decreased from 3.82 percent to 3.79 percent during the week. Points for 30-year conforming loans rose from 0.38 to 0.44.
The average interest rate for 30-year contracts on jumbo loans — larger than $417,500 — fell from 3.95 percent to 3.9 percent. Points for 30-year jumbo loans rose from 0.36 to 0.42.
Interest rates for 15-year, fixed-rate mortgages were unchanged at 3.02 percent, with points rising from 0.36 to 0.42.
The average rate for 30-year loans backed by the Federal Housing Administration fell from 3.53 percent to 3.51 percent with points rising from 0.31 to 0.43. The average rate for short-term, adjustable-rate mortgages decreased in the week from 2.59 percent to 2.58 percent in the week, with points falling from 0.4 to 0.32, the MBA said.