Mortgage Refinancing Slows Along with Mortgage Loan Applications

By Kyle Chezum Updated on 9/25/2013

With a 5.6% decline in the refinancing index, mortgage applications fell 3.8% by U.S. borrowers last week according to an industry trade group on April 25, 2012.  Refinancing activity fell from 75.2% of the total in loan application volume to 73.4% as well for the Mortgage Bankers Association.  This is even with the HARP 2 Refinance program in full motion.

Despite the decline in applications, interest rate averages for 30-year fixed-rate mortgage with conforming loan limits are at its lowest at 4.04% from 4.05%, and 30-year fixed rate mortgage with nonconforming loan limits down to 4.27% from its earlier 4.36%. FHA backed 30-year fixed rate mortgage is also lower at 3.81% and 15-year fixed rate mortgage showing a .01% decline to 3.32%. The 5/1 adjustable rate mortgage is down 0.02% to 2.81% from its previous 2.83%.

The actual purchase index however, has not declined, and is up a solid 3.6%, which is ultimately, positive news.