The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

Mortgage refinancing surges 35% in one week as interest rates hit lowest level in over a year

by admin August 16, 2024
August 16, 2024
Mortgage refinancing surges 35% in one week as interest rates hit lowest level in over a year

It appears to have taken a few weeks for current homeowners to realize mortgage rates had dropped dramatically. And when they did, they acted.

Applications to refinance a home loan surged 35% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. They were up a whopping 118% when compared with the same week one year ago.

This, even though the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) fell very slightly, to 6.54% from 6.55%, with points decreasing to 0.57 from 0.58 (including the origination fee) for loans with a 20% down payment.

While rates dropped just 1 basis point last week, they were down 33 basis points in the past four weeks. They were also 62 basis points lower than the same week a year ago.

“The refinance index also saw its strongest week since May 2022, driven by gains in conventional, FHA, and VA applications,” said Joel Kan, an MBA economist, in a release.

Applications for a mortgage to purchase a home rose just 3% for the week and were still 8% lower than the same week one year ago. Today’s homebuyers are dealing with a lot more than high interest rates. They are still up against high home prices and low supply. There is also a feeling among some buyers, according to agents, that mortgage rates may fall even lower, so they are waiting before making such a large purchase.

The refinance share of mortgage activity increased to 48.6% of total applications from 41.7% in the previous week. One year ago, refinance volume was just 29% of total applications.

Mortgage rates started this week essentially flat, but that could change with the release of the government’s monthly inflation report, the consumer price index.

“There’s no way to know ahead of time whether the data will be friendly or damaging–only that CPI is responsible for some of the biggest spikes and drops over the past few years,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
United CEO expresses ‘renewed confidence’ in Boeing after meeting with new leader
next post
Harris to propose federal ban on ‘corporate price-gouging’ in food and groceries

Related Posts

Key Fed inflation measure rose 2.8% in March...

April 29, 2024

Amazon sued by D.C. AG for allegedly excluding...

December 5, 2024

Biden administration bans noncompete agreements, setting up legal...

April 24, 2024

In a reversal, Disney’s media assets are starting...

August 9, 2024

McKinsey & Co. to pay $650M to settle...

December 17, 2024

Google’s second antitrust trial could help shape the...

September 7, 2024

Consumer protection board sues Walmart and fintech firm...

December 25, 2024

Home prices hit record high in June on...

August 30, 2024

Amazon to invest another $4 billion in Anthropic,...

November 24, 2024

India’s 2nd-wealthiest person charged by U.S. in $250...

November 22, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      July 21, 2025
    • What Musk’s fracture with Trump means for GOP’s future: ‘Beating heart of the Republican Party’

      July 21, 2025
    • Trump’s housing chief rips Powell for blowing millions on Fed facelift during housing crisis he perpetuates

      July 21, 2025
    • Trump celebrates 6 months back in office: US ‘totally revived’ after being ‘DEAD’ under Biden

      July 21, 2025
    • Biden admin spent hefty sum of US tax dollars to upgrade embassy swimming pools in Iraq, Russia

      July 21, 2025
    • Trump heads to Scotland, continues ironing out trade deals after notching six months back in office

      July 21, 2025

    Categories

    • Business (1,299)
    • Politics (4,040)
    • Stocks (1,535)
    • Uncategorized (45)
    • World News (1,292)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved