Mortgage Applications Go Up as Interest Rates Go Down
While interest rates went over 4% on a 30-year fixed loan at the end of last year, they have dropped back down to below 4%. The 30-year fixed interest rate is about 3.97% right now. A year ago this week, it was 3.79%. The 30-year fixed interest rate for FHA loans is 3.9%, and the 30-year fixed rate for jumbo loans (where the loan amount is over $417,000) is 4.02% right now. It’s still a good time to buy.
In fact, according to the Mortgage Bankers Association, with the drop in mortgage rates this week, mortgage applications increased about 21%. Nearly 56% percent of the applications are for refinancing, however. Only 44% are for new purchases.