Mortgage Demand Up 14 On Falling Rates

Mortgage Demand Up 14 On Falling Rates

Mortgage Demand Up 14% on Falling Rates


Total volume for mortgage applications jumped 14 percent on a seasonally adjusted basis this week, as interest rates continue their freefall in the wake of the "Brexit" vote, the Mortgage Bankers Association reported Wednesday. The volume level is now 66 percent higher than a year ago.

Refinancings are mostly fueling the spike. Refinancing applications are up 21 percent week-over-week and are 113.5 percent higher than a year ago, when rates were about three-quarters of a percentage point higher, CNBC reports.

"Mortgage rates have been low for years, but the impact of Brexit has brought us close to record lows once again, with jumbo rates already at their lowest levels, giving more borrowers a larger incentive to refinance," says Mike Fratantoni, MBA's chief economist.

Applications for home purchases saw a smaller rise last week, but still were up 4 percent week-over-week and 23 percent higher than a year ago, MBA reports. 

"Even though financial market volatility may be causing some anxiety, the combination of low rates and a still-strong job market in the U.S. outweighs those fears for these home buyers," Fratantoni says.

The average 30-year fixed-rate mortgage dropped to 3.66 percent last week, the lowest level since May 2013, MBA reported. The 30-year fixed-rate mortgage on jumbo loans — usually considered to be mortgages with balances of more than $417,000 — dropped to 3.67 percent, the lowest level since January 2011.

Source: "Mortgage Refinances Jump 21% on Near Record Low Rates," CNBC (July 6, 2016)

Victor DeFrisco Headshot
Phone: 561-951-3759
Dated: July 6th 2016
Views: 196
About Victor: ...

Property Search

RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Is The Increase In Inventory A Bullish Or Bearish Sign For Real Estate - The increase in housing inventory
Oct 18 2018 59190 1 - Elegant landscape designs can
Boo Best Halloween Events In Palm Beach County - Whether your idea of a Happy
How To Improve Your Credit Scores In 30 Days - How To Improve Credit Score In 30

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Exit Realty Premier Elite
8961 Hypoluxo Road
Lake Worth, FL

Other Locations