The “Real World” of this new report reflects our region! Applications for government mortgage refinancing more than doubled last week, soaring 121.3 percent and reaching an all-time high, the Mortgage Bankers Association reports. The Federal Housing Authority lowered its premiums, contributing to last week’s big jump in FHA refinance volume, MBA said. FHA refinance volume was up 410.9 percent from a year ago.
“New, lower FHA premiums on streamlined refinance loans came fully into effect, and borrowers seized the opportunity to lower their mortgage rates without increasing their FHA premiums,” per Michael Fratantoni, MBA’s vice president of reserach .
Meanwhile, conventional applications for refinancing and applications for purchasing dropped 0.8 percent for the week ending June 15, despite continued low mortgage rates, the MBA reported. Loan requests for home purchases dropped 8.5 percent last week.
Source: “U.S. Mortgage Applications Fell Last Week,” Reuters (June 20, 2012)