Mortgage Applications Continue Strong Start to 2015
At FREEandCLEAR, we follow the Mortgage Bankers’ Association (MBA) mortgage applications index which measures both purchase and refinance applications for mortgage lenders across the country. An increase in the MBA applications index reflects an increase in mortgage applications while a decrease in the index reflects a decline in mortgage applications.
For the week ended January 16th, the composite mortgage application index, which includes both home purchase mortgages and refinancings, jumped 14.2%, an impressive showing considering that the composite index increased a massive 49.1% in the prior week. Refinancings continue to drive the mortgage market as the refinance application index increased 22.0% as compared to a 66.0% increase in the prior week. Purchase applications fell back 3.0% for the week as compared to the 24.0% increase in the purchase application index for the prior week. The mortgage market, and particularly the refinance market, continue to respond to low interest rates with the average interest rate for conforming loans decreasing to 3.80% as compared to 3.89% for the prior week. (Source: Bloomberg)
What it Means for Mortgage Borrowers
Interest rates remain at very attractive levels making this a good time to refinance your mortgage or consider buying a new home. If you have not refinanced your mortgage, FREEandCLEAR recommends that you contact several lenders to understand how much money you could potentially save. If you have been thinking about buying a home, the low interest rates means now could be the right time to pull the trigger. Housing prices fluctuate by market and saving for a down payment can be challenging but low interest rates can save you thousands of dollars over the life of your mortgage. Use the INTEREST RATES feature on FREEandCLEAR to review mortgage rates and fees for lenders in your area and then use our Mortgage Refinance Calculator to determine how much money you could save by refinancing and our Fixed Rate Mortgage Calculator to review your monthly mortgage payment and total interest expense for different mortgage amounts and interest rates.
The FREEandCLEAR Mortgage Expert
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