Mortgage rates have a new record low! The 30-year fixed mortgage rate dropped to 3 percent the week ending October 10. The 15-year fixed-rate mortgage continued to be 2.59 percent as the week prior.
The number of mortgage applications has declined, but are still over 2019 applications in the refinance and the new buyer sector. Refinance has increased 44 percent year-over-year, and the unadjusted purchase index was up to 24 percent year-over-year.
Joel Kan, the Mortgage Bankers Association's Associate Vice President of Economic and Industry Forecasting, expressed that “Mortgage applications for refinances and home purchases decreased slightly last week, despite the 30-year fixed mortgage rate declining to a new MBA survey low of 3.00 percent."
Also, he added that refinance and purchase activity has increased compared to last year, encouraged by record-low rates and the unbelievable demand for housing. Besides, he predicts that despite low inventory, buying activity will "stay strong" for the rest of the year.
Government-baked mortgages cooperated with a 3 percent increase week-over-week. Also, the United States Department of Veterans Affairs (VA) refinance applications increased by 11 percent week-over-week.
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