Currently Reading

Mortgage Rates Dip Again, Fueling More Loan Refinancing

Advertisement
Coronavirus Resources and Information

Mortgage Rates Dip Again, Fueling More Loan Refinancing


October 7, 2020
Person calculating loans
Photo: wutzkoh

Mortgage rates dropped once again last week, but it caused more homeowners to apply for refinancing rather than new homebuyers jumping into the market. The current average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of up to $510,400 dropped to 3.01%. The refinance application volume advanced by 8% during that week, making the volume 50% higher than last year. On the flip side, applications to purchase a mortgage dropped 2% for the week. The mortgage application volume has been dropping little by little for some time now, but remains 21% higher than last year.

“There are signs that demand is waning at the entry-level portion of the market because of supply and affordability hurdles, as well as the adverse economic impact the pandemic is having on hourly workers and low- and moderate-income households,” said Joel Kan, an MBA economist. “As a result, the lower price tiers are seeing slower growth, which is contributing to the rising trend in average loan balances.”  

The average loan size increased again, to a record $371,500, thanks to stronger activity on the high end of the market.

Mortgage rates climbed slightly to start this week but are likely to head lower on the news that President Donald Trump said he is halting stimulus negotiations until after the election.

Read More

Related Stories

Market Data + Trends

Fewer First-Time Buyers Purchased Homes in September

The share of first-time homebuyers has continued to decline since April. In September, the share dropped to 31% from April’s 36%, according to the…

Housing Markets

Exploring the Future of Urban and Suburban Housing

As more Americans change their views on housing and their own homes, the future of urban and suburban housing remains shrouded in mystery. The…

Coronavirus Resources and Information

Will Expiring Eviction Moratoriums Spur a Housing Crisis?

While federal and local eviction moratoriums are protecting many from eviction, there remains a large number of renters who have been unable to…

Advertisement

More in Category




Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.