Mortgage Refinances Surge on Low Rates
Tuesday, July 19, 2016
Posted by: Heather Starkey
The Brexit bonus to U.S. homeowners is still underway. The sharp drop in mortgage interest rates that saw mortgage application volume surge for the week ending July 1st has continued.
The surge has caused a refinance boom. The Mortgage Bankers Association reported that applications to refinance home loans jumped 21 percent for the week ended July 1. Applications were 113.5 percent higher compared to one year ago. A drop in rates for larger, so-called jumbo loans, is leading the refinance run. For the week ending July 8th mortgage applications volume represented by the Mortgage Composite Index rose 7.2 percent on a seasonally adjusted basis from the preceding week. The Refinance Index increased 11 percent from the previous week and the refinance share of mortgage activity increased to 64% from 61.6%.
The impact of Brexit has brought homeowners lower lows in interest rates with the average 30 year conforming non-jumbo loan interest rate at 3.6%. Amazingly, 15 year fixed rate mortgages are at 2.88%. Ready to refinance yet?