The average rate on a 30-year fixed-rate mortgage was 4.81 percent this week, with an average of .8 points. The average rate for the same product one year ago was 5.01 percent. The record low, from November, 2010, was 4.17 percent.
Although mortgage rates are up significantly from November, they are still considerably lower than February, 2010. If rates are still lower today when compared to this time last year, why is the number of mortgage applications down so appreciably?
Mortgage experts believe the drastic reduction in the number of Americans purchasing or refinancing is twofold; Most homeowners who are eligible to refinance have already done so and Mortgage rates have increased rather sharply in a very short period of time.
The average mortgage rate on a 30-year fixed-rate mortgage jumped by .64 percent in a two-month span.
As the economy continues to improve, mortgage rates typically rise. With such little movement on the mortgage rate front this week, this event is an exception rather than the rule. Mortgage professionals are anxiously waiting for spring with optimistic anticipation that the floodgates will open on existing foreclosed properties.
(*Source: Housing Wire)