Applications for refinancing rose 13% (seasonally adjusted), while seasonally adjusted purchase applications increased by 11% from the previous week. Unadjusted, the purchase index rose by 8% compared with the previous week and rose 22% compared with the same week a year ago.
This week’s report is very strong, and an MBA executive explains why:
Following the decrease in applications two weeks ago due to the effects of superstorm Sandy, mortgage applications in many East Coast states rebounded strongly this week. Application volume in New Jersey more than doubled over the week, while volume in Connecticut and New York increased more than 60 percent. In addition to the rebound in the states impacted by the storm, the 30 year fixed mortgage rate reached a new record low in the survey.
The refinancing rate rose a point to 81% of total applications. About 96% of the applications were seeking fixed-rate loans, consistent with last week’s reading.
The average contract interest rate for a conforming 30-year fixed-rate mortgage dropped from 3.61% to 3.52%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 3.88% to 3.83%. The average interest rate for a 15-year fixed-rate mortgage fell from 2.95% to 2.88%.
The contract interest rate for a 5/1 adjustable rate mortgage fell from 2.61% to 2.60%.
The burst of mortgage applications, especially for home purchases tied to rebuilding after Hurricane Sandy, will not last for long, but it gives a nice boost to the mortgage markets in one of their slowest periods of the year.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.