Mini-Mortgage Refinance Boom Continues As Coronavirus Keeps Rates Low
Refinance demand drove the volume, rising 5% for the week and a remarkable 207% Compared with the same week one year ago. Mortgage rates stopped falling this week, and Could move higher if coronavirus fears calm. Rates are hovering around a three-year low, sparking an unexpected refinance boom. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan Balances ($510,400 or less) increased to 3.72% from 3.71%, with points remaining unchanged At 0.28 (including the origination fee) for loans with a 20% down payment.
“The mortgage market continues to be active in early 2020, as applications increased for the third straight week. Rates also rose, but still remained close to their lowest levels since October 2016,” said Joel Kan, an MBA economist. “The refinance index climbed to its highest level since June 2013, and refinance loan sizes also increased as a result of an active jumbo lending market.”