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Home · Property Management · Financing : Mortgage Watch: Lowest Rates in 60 Years

NosediveThe Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 20, 2009.
Mortgage rates fell sharply to low levels not seen in six decades following the Federal Reserves announcement on the Treasury bond and mortgage-backed securities purchase programs.
The drop offered a sizable refinance incentive for most homeowners sparking a pickup in refinance activity, said Orawin Velz, Associate Vice President of Economic Forecasting.

The refinance share of mortgage activity increased to 78.5 percent of total applications from 72.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 1.4 percent from 2.0 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.63 percent from 4.89 percent, with points decreasing to 1.13 from 1.23 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The contract rate is the lowest in the history of the survey, which began in 1990.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.48 percent from 4.52 percent, with points decreasing to 1.07 from 1.18 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for one-year ARMs increased to 6.22 percent from 6.20 percent, with points increasing to 0.15 from 0.14 (including the origination fee) for 80 percent LTV loans.

The survey covers approximately 50 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

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