According to the Mortgage Bankers Association, demand for mortgages last week was at the highest level in four year as interest rates continued to fall.
The majority of the applications (62.7 percent) were for refinancing as many people are using this opportunity to get out of adjustable-rate mortgages and move into safer fixed rate programs. Interestingly enough, only 9.2 percent of the mortgage applications last week were for adjustable-rate mortgages!
I spoke with a mortgage lender this week and they have been flooded with applications as consumers are hoping to lock in on some of the lowest interest rates we have seen in quite a while. At one point this week, rates for a conforming (below $417,000) mortgage with no origination fees were as low as 5.125%. Wow! I think I’m going to go see my mortgage lender!