Buyers are coming strong into the real estate market, by the end of the first week of September 2020, the volume of mortgage applications increased by 2.9 percent, according to the Mortgage Bankers Association (MBA).
On another hand, mortgage rates have decreased again by the end of the same week. The 15-year fixed-rate dropped by 5 points to 2.62 percent, a new record low.
Because of the new low mortgage rates, refinancing activity had a rebound. The refinance index rose 3 percent from the previous week, being 60 percent higher year over year.
Purchase applications also increased this past week, 40 percent higher than last year, however, it must be taking into account that they are being compared to Labor Day 2019. The average loan size increased up to $368,600.
FHA applications kept at 10.2 percent as the previous week. The same happened for the USDA loan applications, they remained at 0.6 percent. The U.S. Department of Veterans Affairs (VA) loans did decline to 11.2 percent from the week before which was at 11.4 percent.
The FHA-backed 30-year fixed-rate mortgages identified a decline for the average contract interest to 3.16 percent, decreasing 0.03 percent from the week before. The LTV loans increased 0.08 percent from the prior week to 0.42 percent.
The average contract interest rate for 15-year fixed-rate mortgages dropped to 2.62 percent, with LTV loans decreasing to 0.33 for 80 percent.
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