Thursday, December 25, 2008

Mortgage Rates Cause Refinances

Mortgage rates went up slightly this week according to Bankrate.com's weekly survey. But, rates are better than last year.

As of December, 24th, Bankrate.com reports that "The benchmark 30-year fixed-rate mortgage rose 42 basis points, to 5.84 percent ... One year ago, the mortgage index was 6.31 percent; four weeks ago, it was 5.97 percent."

The favorable mortgage rates have spurred an increase in refinances. Bankrate.com also references the Mortgage Bankers Association, stating "Almost no one is getting an ARM nowadays. Adjustable-rate mortgages accounted for 1 in 125 loan applications last week, according to the Mortgage Bankers Association."

So - we went to the Mortgage Bankers Association (MBA) website and found their press release here. The MBA reports that "The refinance share of mortgage activity increased to 83.2 percent of total applications from 76.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 0.8 percent from 1.1 percent of total applications from the previous week."

To read the Bankrate.com article, go here

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