Mortgage Applications Increase As Rates Decrease
By Donovan Jackson | Sep 26, 2012 10:22 AM EDT
Applications for U.S. home mortgages rose last week as interest rates dropped to record lows in the wake of the Federal Reserve's latest stimulus efforts, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 2.8 percent in the week ended Sept 21.
The MBA's seasonally adjusted index of refinancing applications climbed 3.3 percent, while the gauge of loan requests for home purchases, a leading indicator of home sales, added 0.7 percent.
The refinance share of total mortgage activity increased to 81.2 percent of total applications, the highest share since early August.
Fixed 30-year mortgage rates tumbled 9 basis points to average 3.63 percent, the lowest level in the history of the survey.
The drop in rates followed the Fed's announcement it will purchase $40 billion in mortgage-backed securities every month until there is improvement in the labor market.
The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.
The effects of this announcement can already be seen, as the Mortgage Bankers Association reported the average interest rate on a 30 year fixed rate loan had fallen to 3.63 percent.
Most Popular
-
1
Setting Boundaries: Why It Is Important to Separate Personal and Professional Relationships -
2
Workplace Distractions That Kill Productivity: It's in Our Hands All the Time -
3
Airlines Industry Report: Passenger and Cargo Airline Employment Statistics as of May 2024 -
4
Diehard Democrat Fired After Posting What She Intended to Be 'Comedic' About Trump’s Assassination -
5
Customs and Border Protection Works with Canines as Biosensors of Smuggled Fentanyl, Firearms at the Mexico Border -
6
Secret Service Faces Scrutiny Over Trump’s Assassination, Causing Calls for The Chief’s Resignation -
7
Even Elon Musk Hates Office Jargons. Here’s Why