Interest in refinancing loans increased at the start of the year and increased by 20% from the previous week.
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The increase in refinancing also led to an increase in total demand for mortgage applications by 16.7% from the previous week, according to the Mortgage Bankers Association’s latest survey.
The previous week’s results included an adjustment for the holiday.
The number of people intending to buy a house rose by 8% last week.
“A booming refinancing activity in the first full week of 2021
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The refinancing share of mortgage activity increased to 74.8% of total applications from 73.5% the previous week.
Demand for mortgages and refinancing rose despite the fact that the fixed-rate fixed-rate interest rate over 30 years rose two basis points to 2.88%.
However, the 15-year fixed-rate mortgage ticked down to 2.39%.
“Sustained housing demand continued to support purchase growth with activity rising nearly 10 percent from a year ago,” Kan added. “The lower average observed loan balance was due in part to a 9.2 percent increase in FHA applications, which is a positive sign of more buyers with lower incomes and first time returning to the market. ”
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The survey covers over 75% of all US retail mortgage applications and has been conducted weekly since 1990.