Fixed Mortgage Rates Continue Downward Movement

The Mortgage Bankers Association (MBA) has published its weekly applications survey which examines nearly 50 percent of all residential mortgage originations and according to the group 30-year fixed and 15-year fixed rate mortgages have once against taken a dip.

According to the groups latest numbers the cost of a 30-year fixed rate mortgage (FHA and conforming GSE data included) declined by 3 basis points to 4.08% over the last seven days while the an increase in purchases of 8.3% was witnessed along with a refinance application increase of 15.3% during the same seven day period.

According to the CSMonitor:

“With rates at or near generational lows (including the 10-year T-Bill), the economy seemingly near recession and the FOMC members becoming more dovish by the day, it will be interesting to see how low rates on the long end can decline.”

In the chart shown below the average interest rate for 30-year fixed and 15-year fixed rates are examined since 2006, including purchase, refinance and composite loans:

As rates have continued to fall the index shows that 76% of all applicants last week were refinancing properties and not purchasing a new or previously occupied home, a number that increased from 73.9% from the prior weeks home loan market.

Have you taken advantage of recent purchase and refinance rates to buy or refinance a home.

[Image via ShutterStock.com]