The Mortgage Bankers Association released their Weekly Application Survey yesterday, and it yielded some interesting statistics.
- Applications to refinance are up 92% since the beginning of November, while purchase applications are up 7%.
- Refinancing applications represented 66% of the total last week.
- The average rate for a 30 year fixed mortgage was 5.49% last week.
- The average rate for a 15 year fixed mortgage was 4.96%.
The takeaway is that mortgage rates are very low compared to their historical average. Now might be a great time to refinance, especially if you have an adjustable rate loan.
To illustrate this point, I have included a chart from the St. Louis Federal Reserve Bank, that shows the interest rate on 30 Year fixed mortgages going back to the early 1970’s.
Note: This chart ends with rates as of 12/01/07.
