As Mortgage Rates Fall, Refinancing Activity Jumps
Mortgage shoppers are in luck.
As global political risks and low inflation have sent interest rates lower, mortgage rates have fallen to levels not seen since late 2016.
The average 30-year fixed mortgage rate on Wednesday fell to just 3.58% according to Zillow Mortgages.
And the Mortgage Bankers Association's latest survey (which includes points in its results), said Wednesday morning that rates had reached the lowest level since last November -- 4.06%, down from 4.11% the week prior. The rate for jumbo balances (more than $424,100), was 3.96%.
Not surprisingly, mortgage applications jumped. Applications for a new mortgage rose by 3.3% for the week ending September 1. An index of refinancing activity increased 5% from the prior week. That measure is still 39% below a year ago, however, points out Peter Boockvar of The Lindsey Group.
Refinancing made up the biggest share of mortgage activity all year -- 51%, up from 49% the week before. The share of adjustable rate mortgages rose, too -- up to 7.2% of all applications.