After a slight drop two weeks ago, mortgage application activity saw an equally slight increase last week – up 2.3 percent. The uptick comes even as the share of refinances is near an eight year low in the wake of rising mortgage rates. This latest information comes from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ended February 3, 2017.
Refinance activity climbed a meager two percent. The share of refinances among total mortgage applications fell from 49.4 percent a week earlier to 47.9 percent. This marks the lowest level since June 2009.
Experts generally predict that mortgage rates will continue to rise in the coming months which may result in a continued decline in refinances. Meanwhile, applications to purchase a home climbed two percent last week as well.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent while 15-year rates are near 3.375 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.