For the first time since 2009, we live in a buyer’s market in terms of mortgage applications. According to the Mortgage Bankers Association, applications for mortgage purchases outpaced refinancing applications. The Market Application Index, which follows the amount of applications, jumped by 5.3%. The Refinancing Index is also up by 2%.
The increase in mortgage applications last week is most likely due to the slightly decreased mortgage rates. The 30-year fixed rate fell to 4.43%. The average rate for jumbo 30-year loans fell to 4.29%. The rate for 15-year loans also decreased to 3.52%. As for the 5/1 ARMs loans, the rates there fell to 3.21% from 3.26%.