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Mortgage Applications Increase 7% on Weak GDP Report

Applications for mortgage loans increased 7.1 percent in the latest Mortgage Application Survey released by the Mortgage Bankers Association. Loan volume was higher because of lower mortgage rates, driven lower on a weak 2nd quarter GDP report released July 29th.

The advance estimate for 2nd quarter GDP was expected to be 2.4 percent but the actual number came in much lower at 1.2 percent. As a result of the weak report, 10 year bond yields fell. Lenders set fixed long term mortgage rates to long term U.S. Treasury yields, so when yields fall, lenders lower mortgage rates.

The downturn in average mortgage rates was short-lived. A strong July Employment Report released last Friday sent mortgage rates higher this week. Nonfarm payrolls increased by 255,000 in July, much higher than the forecast of 180,000 jobs.

Despite the increase, average 30 year mortgage rates are less than 10 basis points above the all-time record low. 30 year mortgage rates today are currently averaging 3.40 percent, up from the prior week's average 30 year rate of 3.39 percent. The all-time record low average 30 year rates was 3.31 percent set in the fourth quarter of 2012.

Average 30 year rates are at 3.40 percent but lenders are quoting rates well below the average. Searching our rate tables for Florida, Sebonic Financial (NMLS # 66247) is quoting 30 year refinance rates at 3.125 percent with 1.10 mortgage points. The lowest 30 year rate without points is from AmCap Funding (NMLS # 324589) at 3.375 percent.

Current mortgage rates on 15 year loans are averaging 2.68 percent, up from the previous week's average 30 year rate of 2.66 percent. The lowest 15 year refi rate without points in our rate database for Florida is also from Sebonic Financial at 2.50 percent with 1.10 points. The lowest 15 year rate without points is from Grow Financial FCU at 2.697 percent.

You can search for and compare mortgage rates from many different lenders in your state by using our rate table. There is no need to provide any personal information or contact information to see a list of rates. Compare rates in your state at MortgageRates.MonitorBankRates.com.







 
Author: Brian McKay
August 10th, 2016