Preferred Loan Type

Property Type
  Property Value
Credit Rating
  Don't know your credit rating?
Click HERE to find out now!
Free Quote
Jan
10

Consumers Moving to Lock Rates on Home Mortgages Across the Country

By

The Mortgage Bankers Association reported last week that applications for home loans surged the first week of January by almost 50%. The weekly mortgage rate survey of MBA indicated that consumers were done with the Holidays and ready to take advantage of record low rates. The only problem for many of these borrowers was that interest rates on refinance and purchase mortgages had inched up from the previous weeks.

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.

Be Sociable, Share!

Share

Leave a Comment