BREAKING: Mortgage rates take biggest one-week drop in a decade. 6% surge in refinances.
Freddie Mac today released data that the 30-year fixed-rate average to a dive to 4.06%*. Sitting at 4.28% just one week ago, the 30-year fixed saw its largest one-week drop in ten years. The 30-year was at 4.04% percent a year ago and now sits at its lowest level since January, 2018.
The 15-year fixed-rate plunged to 3.57% from 3.71% last week and 3.9% one year ago.
Hitting a 7-year high of 4.94% November of last year, rates have tumbled substantially over the past four months with the 30-year fixed-rate average dropping nearly a full percentage point.
Recent announcements from The Federal Reserve paired with growing concerns over Brexit and other other global and domestic economic variables has made for cautious investors who opted for safe assets like long-term bonds, which is tied closely to mortgage rates, causing them to decline.
(*4.06% is the national average mortgage rate as reported by Freddie Mac. Interest rates will vary based on loan product, mortgage company, consumer credit score and loan-to-value (LTV). Consumers should seek the advisement of a licensed mortgage professional to determine best possible rate for their situation.)
Mortgage Applications and Refinances Surge
Powered by continued rate drops, mortgage applications soared this week as reported by the Mortgage Bankers Association. Total loan application volume, measured by the market composite index, increased 8.9% over a week earlier.
While the new home purchase index jumped 6% over last week, the refinance index surged for a double increase at 12% over a week earlier.
In fact, 40.4% of all mortgage applications in the last week were for refinance.
“The trend lower in rates is providing the right amount of lift to the mortgage market. We’re seeing activity in the first quarter signifying a significant rise in purchase and refinance over last year for 12 weeks running,” said Aaron VanTrojen, Geneva Financial CEO and Founder. “The steam generated from the past several weeks of rate drops is a welcome start to the busy season.”
By James Polinori | Chief Marketing Officer | Geneva Financial
March 28, 2019 10:28 AM