News of the first omicron variant in the U.S. led to a shake up in the stock and bond markets. This resulted in a slight drop in mortgage rates that led to a surge in refinancing. According to Mortgage Bankers Association, the refinance share of mortgage activity climbed to 63.9 percent of total applications last week, up from 59.4 percent the previous week.
Overall, there was a nine percent jump in applications from homeowners to refinance an existing mortgage last week. Still, despite this recent surge, the volume of refinances is 37 percent lower than the same week last year when mortgage rates were 40 basis points lower.
Total mortgage application activity is near the highest levels seen since March 2021.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0924 and your questions may be featured in an upcoming article.
