According to Freddie Mac, the 30-year fixed rate mortgage hit a low for the year during the week ended June 9. The national average was 5.56 percent, down from 5.62 the previous week. The 15-year fixed also dropped 0.06 to 5.14 percent, the lowest since February 17, 2005.
Both the 1-year ARM and the 5/1 product were also down. The 1-year was at 4.21, down from 4.26 the previous week and tying the rate of May 26. The 5/1 showed the sharpest decrease among the four products, down .09 percent to 5.01, the lowest since February 10, 2005.
Fees and points for the 30 year, 1-year and 5/1 were unchanged from the previous week (0.6, 0.5, and 0.6 respectively) but the 15-year average dropped 0.1 to 0.5.
As is often the case, the Mortgage Bankers Association survey told quite a different story. That survey showed mortgages rates up across the board; the 30-year increased from 5.55 percent to 5.62 percent; the 15 year was up .05 percent to 5.18, and the 1-year ARM took a big jump, from 4.09 to 4.38 percent.
MBA�s big news, however, was that the week was a banner one for purchases, mortgage applications, and refinance requests.
We seldom mention MBA�s Purchase Index, but it hit an all time high last week, up 10.4 percent on a seasonally adjusted basis from the week before.
The Market Composite Index which tracks mortgage application volume also had a wild week. It increased 17.4 percent from the previous week on a seasonally adjusted basis and 29.2 percent unadjusted. Most impressive of all, it was up 46.1 percent from the same week in 2004.
Refinancing activity continues to unabated. Applications represented 46.4 percent of all mortgage activity compared to 42.9 percent a week earlier � this in spite of repeated forecasts from many quarters that the days of rampant refinancing are over.
The ARM share of the market, however, decreased to 30.9 percent from 31.7 the previous week.