According to a recent statement made by Mortgage Bankers Association, an astonishing 12% rise has been seen in the average volume of applications for mortgage on the basis of seasonal adjustments and the recent fall in interest rates is being considered a major contributor in this. On unadjusted basis, the index of market composite has shown an increase of 61% as compared to the prior week.
As there was a gradual but constant increase in interest rates during early November, it lead to a modest decline in amount of mortgage applications received per week.
Talking about the lowered interest rates, it has definitely brought a relief for the buyer segment. The average rate of interest on fixed rate of mortgage, along with conforming loans, of 30 year reached 4.66 %, coming down from the level of 4.72 % which was seen in prior week. Similarly, interest rate on fixed rate mortgage, along with a jumbo loan balance, of 30 year has declined from the previous rate of 4.66 % to 4.58 %.
The average rate of interest of fixed rate mortgages for 30 year, supported by FHA or Federal Housing Administration, has also shown a decline. It has come down from 4.36 %, where it was till previous week, to 4.29 %.
Continuing the trend, the average interest rate of fixed rate mortgage for 15 year has gone down to 3.72 %, which was earlier at 3.77 %. Similarly, average rate of 5/1 ARM is seen to reach 3.28 %, as it decreased from 3.33 %.