Fall in mortgage rates causes a wave of refinancing

The Association of Mortgage Bankers announced that when the existence of the Omicron variant became known came a short drop in mortgage rates , as demand for mortgage refinancing increased last week. This situation will probably be short-lived.

According to the mortgage organization, the drop in the rate was not so great if you look at the fixed weekly average of years. Loans with balances of $ 548, 250 dollars or less, fell from 3. 31% to 3. 30%, decreasing from 0. 40 to 0. 37, including the opening fee for loans with a down payment of 20% .

Rates had dropped dramatically at the end of the previous week and then remained in that category until last Tuesday before starting to rise again as of Wednesday.

Although everything happened in a week, there was enough time to generate a 9% increase in refinance applications . According to the Mortgage Bankers Association, this represented a 37% lower than the same week last year. Mortgage rates were 43 points lower than these heights of the previous year.

The demand for government refinancing through the Federal Housing Administration experienced a weekly increase of 20%. The refinancing share of mortgage activity increased to 05. of the total requests for the previous week, which was around 59 .4%.

Mortgage applications for the purchase of a home, which are less sensitive to weekly rate changes, decreased 5% during the week and were 8% lower than the same week a year ago. This after four consecutive weeks of earnings.

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