Lowest Rates Since Sept. 2017 Drive Mortgage Surge
Mortgage applications are surging as interest rates fall to their lowest levels since September 2017. Most of the traffic is coming from refinancing, according to a USA Today report.
The article says total mortgage applications surged 26.8% last week, led by an increase in refinancing based on Mortgage Bankers Association data. Applications to refinance mortgages jumped a whopping 47% from the prior week to the highest level since 2016.
Mortgage applications to buy a home also perked up, increasing 10% after several weeks of lackluster showings as house shoppers finally responded to falling rates. The average contract interest rate for 30-year fixed-rate mortgages with loan balances of $484,350 or less dipped to 4.12% from 4.23%.
One soft point, though, is entry-level homes and their associated mortgages. USA Today reports housing supply is still limited for entry-level homes, curtailing home sales.