MBA Survey Says: Rates Down, Refinancing Up

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey with positive news: The number of homeowners applying for mortgages or refinancing went up while interest rates went down.
The Market Composite Index, which measure the amount of mortgage loan applications, increased 8.8 percent on a seasonally adjusted basis from one week earlier.
The Refinance Index went up 12.6 percent. That’s the highest level since May 2009.
Of course, refinancing is up as rates are at record lows. According to the survey, the 30-year fixed-rate mortgage went down to 4.67 percent, which is the lowest 30-year rate recorded in the survey since April 2009.
The 15-year fixed-rate mortgage fell to 4.67 percent. That’s the lowest 15-year rate ever recorded in the survey.
“Amid continuing financial market volatility, mortgage rates dropped again last week, with rates on 15-year loans reaching a record low for the MBA survey,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Refinance applications jumped in response, but remain at about half the level seen in the spring of 2009.”
So we still have some work to do.
The MBA Survey covers more than 50 percent of all U.S. residential mortgage applications and has been conducted weekly since 1990.