WASHINGTON, Aug. 10 (UPI) — The Mortgage Bankers Association said U.S. mortgage activity increased dramatically in the week ending last Friday as interest rates fell.
Interest rates for 30-year, fixed-rate mortgages dropped from 4.45 percent to 4.37 percent with points increasing from 0.78 to 1.07. Rates for 15-year, fixed-rate contracts were unchanged at 3.52 percent with points decreasing from 1.02 to 0.96, the association said.
“Amid substantial market turmoil last week, mortgage rates dropped to their lowest levels of the year and refinancing application jumped more than 30 percent to their highest levels of the year,” said Mike Fratantoni, MBA’s vice president of research and economics.
The banking group said its weekly mortgage activity index rose 21.7 percent, while the refinancing index rose 30.4 percent.