Interest in mortgage refinancing soared at the beginning of the year, up 20 percent from the previous week.
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Refinancing increases also increased overall demand for home loan applications 16.7% from the previous week, according to a recent survey by the Mortgage Bankers Association.
Previous week results, including holiday adjustments
The number of people intending to buy a home increased 8% in the past week.
“Booming refinancing activities in the first week of 2021pushed loan applications to their highest levels since March 2020, although most mortgage rates in the survey were up last week,” said Joa. “The prospect of further fiscal stimulus from the incoming administration and the introduction of a trend-improving vaccine will drive higher yields and the Treasury rate.”
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The refinancing share of mortgage activity rose to 74.8% of all applications from 73.5% the previous week.
Demand for home loans and refinancing has increased even though the 30-year fixed mortgage rates rose 2 basis points to 2.88%.
However, 15-year fixed-rate mortgages fell to 2.39%.
“Sustainable housing demand continues to support purchase growth, with activity up nearly 10 percent from last year,” added Kan. “The average mortgage decline was partly due to applications. A 9.2 percent increase in the FHA, a positive sign of Low-income buyers and more for the first time returning to the market. “
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The survey covered over 75% of all U.S. mortgage applications and has been conducted weekly since 1990.