U.S. Mortgage Rates Hit Record Low 3.19%, Refinancings Surge To One Month High – MBA
U.S. mortgage rates fell to a record low for the fourth consecutive week, data from an industry lobby group indicated Wednesday, triggering a surge in refinancing activity as house prices remain elevated despite the coronavirus pandemic.
The Mortgage Bankers Association said 30-year fixed rates for conforming loan balances of less than $510,400 fell 7 basis point to 3.19% for the week ending July 10 a new all-time low that’s more than half a percent lower than in March of this year.
The MBA’s refinancing index rose 11.9% to 3,3774.3 points, the highest level in at least a month and more than 107% higher than last year, while mortgage applications jumped 5.1%, adjusting for the July 4 holiday. The seasonally-adjusted Purchase Index, which tracks mortgage applications for the purchase of a single family home, fell 6.1% to 305.4 points, but is still up 16% on the year.