Mortgage demand has received a boost as mortgage rates decline for three consecutive weeks. Lenders remain in high demand as applications for purchase and refinancing loans rose slightly week-over-week. The demand for loans remains significant as lenders look to capitalize on historically low rates.
The Mortgage Bankers Association reported that mortgage applications rose 2.7% overall during the week ending October 23rd. This is compared to the previous week, where applications declined 11.2%. Breaking it down further, purchase applications rose 2.% while refinance applications increased 2.9% over the same time period. The data shows that borrowers are taking advantage of lower rates and quickening the process of financing a home.
The 30-year fixed-rate mortgage dropped to 3.01% for the week ending October 24th, representing an all-time low for the MBA survey. This is 0.08 percentage points lower than the week before and 60 basis points lower than the same week last year. The 15-year fixed-rate mortgage also dropped to 2.37%, a similarly impressive decrease from the prior week and an incredible decrease from the same week last year. These numbers demonstrate that lender demand remains high and borrowers are eager to secure favorable mortgage rates.
As mortgage rates continue to stay relatively low, lenders are experiencing a surge in demand. The data from the week of October 23rd to the previous week shows that applications are on the rise. This is a result of both potential home buyers and pre-existing homeowners looking to refinance their mortgages. The 30-year and 15-year fixed-rate mortgages recorded low all-time rates, spurring demand further. This indicates that lenders remain in high demand, despite historically low rates.
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