Refinance Applications Drop During Holiday Week as Refinance Rates Decline

Refinance applications declined during the Memorial Holiday as refinance rates on several types of mortgage products declined to new all-time lows. In the Mortgage Bankers Association's Weekly Mortgage Application Survey 30 year fixed conforming mortgage rates dropped to a new all-time low of 3.91 percent with 0.46 points for the week ending May 25, 2012. This is down from the prior survey average of 3.93 percent with 0.39 points.

The MBA's mortgage survey is a trailing survey and average 30 year mortgage rates today are even lower. The current national 30 year mortgage rate is at 3.76 percent. Rates are lower today because 10 year bond yields tumbled to 1.62 percent yesterday on European debt issues.

Mortgage applications for both home purchases and refinancing declined this week's survey which wasn't adjusted for the early Friday closing for the Memorial Holiday weekend. The Refinance Index declined 1.5 percent from the previous week and the Purchase Indexed declined 0.6 percent from the previous week.

Refinance applications still make up the majority of all mortgage applications because current refinance rates are so low and home buyers are still waiting on the sidelines. The National Association of Realtors reported and unexpected 5.5 drop for April Pending Home Sales after three months of gains. You can view this video on Pending Home Sales from the NAR here:

30 year conforming mortgages weren't the only mortgage product to make all-time record lows in the survey. 15 year mortgage rates, 30 year FHA mortgage rates and 5 year adjustable mortgage interest rates all made record lows for the week ending May 25, 2012.

15 year mortgage rates averaged 3.23 percent with 0.39 points, down from the May 18th average of 3.26 percent with 0.42 points. Today's refinance rates on 15 year mortgages are even lower averaging 3.07 percent. You can also find some lender's offering 15 year refi rates under 3.00 percent if you're willing to pay points.

Average 30 year FHA mortgage rates hit an all-time record low of 3.70 percent with 0.59 points, down from the May 18th average of 3.73 percent with 0.57 points which was also a record.

Jumbo mortgage rates declined to 4.23 percent with 0.40 points, down from an average jumbo mortgage interest rate of 4.25 percent with 0.42 points. Refinance rates today on 30 year jumbo loans are slight higher at 4.38 percent.

There are lender's offering 30 year jumbo refi rates lower including Aimloan which is offering 30 year CA refi rates at 4.20 percent with 0.63 points. Citibank is offering 30 year jumbo refinancing rates slightly higher than the averages at 4.40 percent with zero points.