Mortgage Rate Drop to Below 5% Stirs Demand
U.S. mortgage rates retreated below 5 percent last week, propping demand for home loans, Mortgage Bankers Association data showed on Wednesday.
February's volatile housing demands come on the heels of a January sales slump, blamed mainly on unusually harsh winter weather. The industry group's market index, which measures requests for loans to buy homes and refinance, rose by a seasonally adjusted 14.6 percent in the week ending Feb. 26 to the highest level since mid-December.
Purchase applications increased 9 percent, while refinancing requests jumped 17.2 percent last week as average 30-year mortgage rates fell 0.08 percentage points to 4.95 percent."Mortgage applications rebounded last week, particularly refis, as rates dropped back below 5 percent," Michael Fratantoni, vice president of research and economics at MBA, said in a statement.
Rate drops always stimulate interest! As we head into the spring housing market, this is certainly good news.
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