Mortgage rates dropping to their lowest point in nearly a year was a shot in the arm for refinances last week. According to the Mortgage Bankers Association Weekly Mortgage Application Survey, overall mortgage application volume jumped 4.7 percent during the week ended December 1.
Driving the impressive increase was a nine percent climb in refinance applications which drove the refinance share of mortgage activity to 51.6 percent of total applications – up from 48.7 percent the previous week.
Mortgage rates are currently far lower than they were a year ago. Rates have steadily declined from a post-presidential election spike seen last November. The increase in refinances is indicative that homeowners are moving to lock in the current historically low rates. Conforming no-point 30-year fixed rates are averaging 4 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.