Mortgage Rates on All Five Mortgage Products Drop to Record Lows in MBA Survey
Average mortgage rates on all five mortgage products dropped to all-time record lows in the Mortgage Bankers Association's Weekly Application Survey for the week ending September 28, 2012. Lower mortgage rates increased demand for mortgage applications for both home purchases and refinances. Average conforming 30 year mortgage rates hit a record low of 3.53 percent with 0.35 points, down from the prior week's average of 3.63 percent with 0.41 points.
A ten basis point decline in average 30 year conventional mortgage interest rates is a big drop on a week over week basis. The driving factor behind why mortgage rates are plummeting the past three weeks is the Federal Reserve's new policy of buying $40 billion a month in mortgage backed securities (MBS). The Fed announced the plan right after their mid-September meeting and that started the downtrend which has accelerated this past week.
Lower current mortgage rates sent applications for mortgages higher. The MBA's Market Composite Index, which measures all mortgage loan application volume, surged 16.6 percent on a seasonally adjusted basis from one week earlier. The Refinance Index, which is a measure of mortgage applications for refinancing loans jump 20 percent from the prior week. Homeowners applying for loans to refinance their existing mortgage made up 83 percent of all mortgage application volume.
The MBA's survey is a trailing survey that ended 5 days ago, average rates have fallen even further. Today's mortgage rates on 30 year loans are averaging 3.39 percent in Bankrate's national survey. Both the MBA's survey and Bankrate's survey are average rates; you can find lenders offering rates below the averages.
On our rate table for 30 year conventional mortgage refinance rates in the state of Florida there are lenders offering 30 year rates below the averages. One lender, Lender Fi is advertising 30 year refinance rates in Florida at an incredibly low rate of 2.875 percent with 1.75 points. We have other lenders listed offering 30 year Florida refinance rates between 3.00 percent and 3.125 percent with points and some lenders are offering 30 year refinancing rates at 3.25 percent without points.
Average 15 year conventional mortgage rates in the MBA survey hit an all-time record low of 2.90 percent with 0.27 points, down from last week's average 15 year mortgage rate of 2.98 percent with 0.41 points. Current mortgage rates on 15 year loans are even lower averaging 2.82 percent in Bankrate's national rate survey.
Right now on our 15 year refinance mortgage rates list in the state of Maryland there are several lenders offering rates well below the averages. The lowest 15 year Maryland refinance rate is from American Interback.com at 2.25 percent with 1 mortgage point. Without points you can find lenders offering 15 year refi rates at 2.625 percent with zero points.
30 year jumbo mortgage rates averaged 3.82 percent with 0.32 points in the MBA survey, down from the previous week's average 30 year jumbo mortgage rate of 3.87 percent with 0.33 points. Right now on our 30 year jumbo refinance rates list in the state of California we have Citi Mortgage listed as offering 30 year jumbo refi rates at 3.125 percent with zero points.
FHA mortgage rates in the MBA survey for the week that ended on September 28, 2012, hit an all-time record low of 3.37 percent with 0.36 points, down from the prior week's average 30 year FHA mortgage rate of 3.44 percent with 0.41 points.
5 year adjustable mortgage rates averaged 2.59 percent with 0.34 mortgage points, down from an average 5 year adjustable mortgage rate of 2.61 percent with 0.41 points. Right now on our 5 year adjustable refinance rates list in the state of Texas there are lenders offering rates as low as 2.125 percent with points.
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