Consumers Moving to Lock Rates on Home Mortgages Across the CountryBy
Many Borrowers Are Scrambling to Lock their Mortgage Rate
Purchase loan inquiries have accounted for nearly 20% of total applications. The report also revealed that HARP loans may be driving 25% of total volume of home refinancing applications. Nationwide mortgage lenders have confirmed that rates have been higher and pricing had worsened. Most loan officers are locking loans and not taking chances on the market recovering.
The rates on 30-year mortgages averaged 3.4% paying a little more than half a percent for origination and the rates on the 15-year averaged 2.625% paying .7% for lending costs. We noticed a spike in inquiries for people looking to refinance with one of the hybrid ARMs like the 5/1 and 7/1 loans because they provided affordability and security for 5 or 7 years. We anticipate rates to stay steady for the next few weeks. If the debt ceiling deal goes sour than we may see another dip in rates but do not count on it.