Posted by MikeC/NY on 3/25/09 3:59pm
Msg #282129

Interesting read

As Rates Fall, Mortgage Applications Jump

For the second straight week, mortgage applications rose significantly in response to the government’s efforts to stabilize housing and the economy.

The Mortgage Bankers Association’s week index reached 1159.4, an increase of 32.2 percent on a seasonally adjusted basis from 876.9 the previous week. On an unadjusted basis, the index rose 31.4 percent and was up 18 percent compared with the same week a year ago.

The refinance index increased 41.5 percent, while the purchase index rose 4.2 percent. Overall, the refinance share of mortgage activity hit 78.5 percent, up from 72.9 the previous week.

“Mortgage rates fell sharply to low levels not seen in six decades following the Federal Reserve’s announcement on the Treasury bond and mortgage-backed securities purchase programs. The drop offered a sizable refinance incentive for most homeowners sparking a pickup in refinance activity,” said Orawin Velz, Associate Vice President of Economic Forecasting.

Mortgage rates continued to decline:

30-year fixed-rate mortgages decreased to 4.63 percent from 4.89 percent.
15-year fixed-rate mortgages decreased to 4.48 percent from 4.52 percent.
1-year ARMs increased to 6.22 percent.

Source: Mortgage Bankers Association (03/25/2009)

Reply by jba/fl on 3/25/09 4:37pm
Msg #282134

Notice they still have ARMS - going uP n/m

Reply by NC_Notary on 3/25/09 6:28pm
Msg #282143

I have been calling my mortgage rep everyday and the

lowest they are quoting is 4.50 and that is us paying 1 point. I would have thought by now we could have gotten a lower rate. Which lender is offering lower?

TIA

Reply by MikeC/NY on 3/26/09 2:50pm
Msg #282232

Re: I have been calling my mortgage rep everyday and the

Depends on your situation - everyone's mileage is going to vary, depending on credit score, assets, how much skin you're willing to put in the game, etc.

The LO in my real estate office tells us that the lowest rates are always going to come with 1 or 2 points. If you're looking for zero points and rates in the 4.5% range, you may be looking for a long time...

I just had a deal on a house I'm selling fall through because the buyers couldn't get a favorable rate. They were putting about 60% down in cash, have excellent credit (FICO about 780), but both are self-employed and the purchase was a second home (which made things even worse). Best rate they could get after two weeks of trying and exhausting all options: 9.5%