Although small, mortgage applications recorded a slight increase last week, according to the Mortgage Bankers Association's Market Composite Index. Total application volume ticked up 2.9 percent during the week ended September 30.
Refinance applications increased 5 percent from the previous week while purchases dipped 0.1 percent. Of total applications, the vast majority – 63.8 percent – were to refinance existing mortgages, stoked by mortgage rates dropping to their lowest since July.
Mortgage rates are maintaining levels near all-time lows, a lasting effect from global economic uncertainty that began with last spring's Brexit and the more recent Deutsche Bank struggles. The overseas events drove down yields of government bonds resulting in the lower rates. Borrowers are expected to enjoy lower rates for the time being after the Federal Reserve left short-term rates unchanged last week.
Today, conforming no-point 30-year fixed rates averaging 3.375 percent while the 15-year rate is near 2.75 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.