Mortgage rates decreased slightly last week, leading to a greater number of eager buyers and homeowners to apply and refinance, respectively.
The Mortgage Bankers Association reported that the average 30-year fixed ate loan fell from 4.17% to 4.13%, which is its lowest level since mid May. The average 15-year fixed rate loan and 5/1 Adjustable Rate Mortgage (ARM) also became more affordable. These rates come amid multiple mixed economic reports, including continued global economic unrest, leading investors to seek security in the U.S. market.
As a result, buyers scrambled to lock in their mortgage rates and homeowners continue to refinance in large numbers. Mortgage applications increased by 4.7% week-over-week, led largely by the increase in refinancing.