Mortgage refinancing increases as rate hits record lows
Posted on Friday, February 10, 2012 at 3:31:26 PM
Mortgage applications and refinancing increased for the week ending on February 3, 2012, according to the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey. The survey reports an 80.5 percent increase in mortgage refinancing - up from last week's 80 percent. News of record low interest rates and mortgage rate comparison charts have homeowners seeking new financing options to lower their monthly payments.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming balances of $417,500 or less decreased to 4.05 percent, from the previous record low of 4.09 seen earlier this year.
Overall, the Market Composite Index, a measure of mortgage application volume, both new and refinanced, increased 7.5 percent on a seasonally adjusted basis and 8.7 percent in an unseasonal adjusted basis. Residential financing options are available for many current homeowners and first time homebuyers actively searching for new properties. Experts have declared the current industry a buyer's market - indicating new power for consumers pre-approved with loans, good credit scores and a sizable down payment.