Refinance Lead Activity Jumps

The good news for mortgage professionals last week was that refinance lead activity rose to its highest level in over a year. Lead Planet chief economist, Kevin Grant announced Friday that refinance applications increased 5.9% to 2116.3. The overall rise in mortgage leads online crept up 6.6% from the previous week. Grant said that this was the most significant increase since May of 2009.” The Mortgage Bankers Association said in their report that the Refinance Index increased 12.6% from the previous week. MBA also indicated that the adjustable-rate mortgage share of activity decreased to 4.7% from 4.9% of total applications from the previous week.

The average mortgage rate for 30-year fixed-rate mortgages fell to 4.67% from 4.75%, with points decreasing to 0.96 from 1.07 for 80% loan-to-value (LTV) ratio loans. This is the lowest 30-year mortgage rate recorded in the survey since the week ending April 24, 2009. The effective interest rate also dropped from last week.

The average mortgage interest rate for 15-year fixed-rate mortgages dropped to 4.06 % from 4.19%, with points decreasing to 0.97 from 1.00 for 80% LTV loans. This is the lowest 15-year mortgage rate ever recorded in the survey. The effective rate also decreased from last week.

The average home loan rate for one-year ARMs was unchanged at 7.05%, with points remaining constant at 0.27 for 80% LTV loans.

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