Mortgage Rates Now At Lowest Point In 7 Years
According to the Mortgage Bankers Association's Weekly Applications Survey, average mortgage rates fell to their lowest level in more than seven years last week. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Michael Fratantoni, MBA's senior vice president and chief economist, said the decline was due to concerns about the coronavirus. “The 30-year fixed-rate mortgage dropped to its lowest level in more than seven years last week, amidst increasing concerns regarding the economic impact from the spread of the coronavirus, as well as the tremendous financial market volatility,” Fratantoni said. “Refinance demand jumped as a result, with conventional refinance applications increasing more than 30 percent.” Refinance activity is now 224 percent higher than it was at the same time last year. Purchase activity is also up from last year, rising 10 percent above year-before levels. The MBA's weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.