Surge in refinance and purchase activity drives mortgage demand
The mortgage rate environment remained low despite the 30-year fixed-rate mortgage (FRM) edging up on Thursday, according to Freddie Mac’s Primary Mortgage Market Survey.
“With mortgage rates hovering near a five-decade low, refinance application activity is once again surging, rising to the highest level in seven years,” said Sam Khater, Freddie Mac’s chief economist. “This surge, coupled with strong purchase activity means that total mortgage demand remains robust, reflective of a solid economic backdrop and a very low mortgage rate environment.”
The 30-year FRM moved up two basis points to 3.47% from last week’s 3.45%. Last year, the rate for the 30-year mortgage was 4.37%.
The 15-year FRM, on the other hand, held steady at 2.97%. A year ago, the rate for the 15-year mortgage was 3.81%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) slipped from last week’s average of 3.32% to 3.28%. Last year at this time, the 5-year ARM was 3.88%.
