15-year home loans drop to record lows
The 15-year mortgage rate fell last week to a new low of 2.36%, spurring more refinancing of home loans.
Applications to refinance a home loan jumped 9% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The MBA said the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 3.01% from 3.11%, with points decreasing to 0.34 from 0.43 (including the origination fee) for loans with a 20% down payment. That is the lowest rate for 30-year mortgages since February.
The decline in mortgage rates follows the drop in the 10-year Treasury yield last week.