This year’s steady decline in mortgage interest rates has taken another step down the ladder over the past week. Rates have dropped all the way to 2.81% , down from 2.87% last week and down from the previous record low of 2.86% in September, according to the Freddie Mac weekly mortgage survey. Those numbers reflect a typical 30-year fixed rate mortgage with 20% down. For a 15-year loan the rates have reached 2.35%.
Applications for mortgages only took the slightest dip, showing an overall decrease of .7% for both purchase and refinance applications combined compared to the week before, according to the Mortgage Bankers Association weekly survey. Both types of applications are still showing strong demand, with purchases seeing a 24% increase year-over-year and refinance applications seeing a 44% increase compared to the same time frame. Refinances made up roughly two-thirds of the application pool, with 65% of the activity coming from the refinance market.
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