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St Louis Real Estate Search

Mortgage rates drop; Borrowers refinancing jumps over 22 percent for the week

Dennis Norman

Dennis Norman

By: Dennis Norman

The Mortgage Bankers Association (MBA) released its weekly mortgage applications survey for the week ending September 4, 2009. The report showed an increase of 17.0 percent in borrowers applying for home mortgages to buy a home from the week before. This marks the largest gain in the index since early April, putting the index at the highest level since the first week of January.

There was a massive increase of over 22 percent from the week before for borrowers refinancing their existing home mortgage making . This the biggest jump in the increase since mid-March.

For the past four weeks there has been a 3.3 percent increase in borrowers applying for home mortgages to buy a home and a 9.7 percent increase in borrowers refinancing their existing home mortgages.

Interest rates were down for the week which helped fuel the increased volume. The average interest rate for 30 year fixed rate mortgages decreased to 5.02 percent from 5.15 percent with loan fees increasing to 1.23 percent from 1.09 percent on loans for 80 percent of the value of the home.

The average interest rate for a 15-year fixed-rate mortgage decreased to 4.45 percent from 4.57 percent with loan fees increasing to 1.13 percent from 0.85 percent on loans for 80 percent of the value of the home.

The average interest rate for one-year ARMS decreased to 6.69 percent from 6.71 percent, with loan fees decreasing to 0.19 percent from 0.20 percent on loans for 80 percent of the value of the home.

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