Homeowners respond to lower mortgage rates by refinancing

Homeowners respond to lower mortgage rates by refinancing

A rush of homeowners looking to refinance their home in response to another drop in mortgage rates helped push the volume of mortgage applications higher last week. The Mortgage Bankers Association reported in its Market Composite Index for the week ended September 27 that total volume jumped 8.1 percent over the week. This is a turnaround from the 10.1 percent decline seen the prior period.

The increase was driven primarily by a 14 percent spike in the Refinance Index which is currently 133 percent over where it was last year when rates were higher. The refinance share of mortgage activity increased to 58.0 percent of total applications, up from 54.9 percent the previous week.

Those looking to refinance their home will find conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 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 (866) 381-8888 and your questions may be featured in an upcoming article.