(212) 769-9807
Pzweben@Elliman.com
Menu
Menu

Applications for refis rise 41.5%

Applications for refis rise 41.5%

Low rates spur boom

Inman News

Applications for refinance loans jumped 41.5 percent last week, after the Federal Reserve announced expanded purchases of mortgage-backed securities that pushed interest rates to lows not seen in six decades, the Mortgage Bankers Association said today.

Applications for purchase mortgages for the week ending March 20 were up a more modest 4.2 percent, the MBA said, with requests for refinance loans accounting for 78.5 percent of all mortgage applications.

The Fed announced on March 18 a $1.15 trillion expansion of its balance sheet, including a $750 billion increase to a previous commitment to buy $500 billion in mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac and Ginnie Mae.

The Fed's announcement brought the average contract interest rate for 30-year fixed-rate mortgages to 4.63 percent last week, down from 4.89 percent the week before, the MBA said. Points, including the origination fee, averaged 1.13, down from 1.23 the week before.

That rate -- available to borrowers putting 20 percent down -- was the lowest since the MBA began the weekly surveys in 1990.

The average contract interest rate for one-year adjustable-rate mortgage (ARM) loans increased to 6.22 percent from 6.2 percent, with points increasing to 0.15 from 0.14 (including the origination fee) for 80 percent loan-to-value loans.

With rates on fixed-rate and ARM loans moving in opposite directions, applications for ARM loans made up only 1.4 percent of applications, down from 2 percent the week before, the MBA said.

Fixed-rate mortgages haven't been this affordable since the early 1950s, MBA Chief Economist Jay Brinkmann said this week in boosting the association's projections for 2009 mortgage originations.

While purchase originations are expected to fall slightly from 2008 levels, the refi boom could push total mortgage originations to $2.78 trillion in 2009, which would be the fourth-highest total on record. That estimate could prove too optimistic if fears of inflation push rates back up, Brinkmann said.

Have you seen these yet?

Work with The Zweben Team

With The Zweben Team, we guarantee attentive and personalized service. We genuinely listen to your aspirations, offer sincere recommendations, and utilize our expert negotiation skills to fiercely advocate for you. With us, you're choosing unparalleled expertise and a tailored experience to meet your unique real estate needs.
Contact us

Subscribe To

THE ZWEBEN TEAM NEWSLETTER
Experience a monthly dose of handpicked content from The Zweben Team, showcasing exclusive property listings, market updates and a little foodie fun.

Paul Zweben, Licensed Associate RE Broker
pzweben@elliman.com
Carolyn Zweben, Licensed Associate RE Broker
czweben@elliman.com
1995 Broadway, New York, 10023

Copyright @ 2024 The Zweben Team. All Rights Reserved. Privacy Policy. Powered by 23 Window Media.

575 MADISON AVENUE, NEW YORK, NY 10022. 212. 891.7000 © 2024 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. EQUAL HOUSING OPPORTUNITY. NYS STANDARD OPERATING PROCEDURE & NYS HOUSING DISCRIMINATION DISCLOSURE FORM. NOTICE DISCLOSING TENANTS’ RIGHTS TO REASONABLE ACCOMMODATIONS FOR PERSONS WITH DISABILITIES.

cross