This is the third week in a row that all mortgage rates have decreased or remained steady at a record-low level. This week, we have also seen an 11.1% increase in mortgage applications, which haven't increased in weeks, and which is attributed partly to Labor Day holiday.
The 30-year fixed-mortgage rate has remained constant at 3.55%, as it was last week. The 1-year adjustable rate has also remained steady at 2.61%, which is still the lowest rate the 1-year mortgage has reached in many decades.
The 15-year fixed-rate decreased from 2.86% last week to 2.85% this week, and the 5-year mortgage rate also decreased from 2.75% last week to 2.72%.
According to Freddie Mac, such a broad record-low decrease in mortgage rates hasn’t been seen in quite a while. So it is recommended that if you are looking for a refinance mortgage or mortgage to finance the purchase of a home, you should apply for mortgages that have these low mortgage rates before they increase.
Of the overall mortgage application activity, refinancing has increased from 79% last week to 80% this week. The application for adjustable-rate mortgages decreased from 5% last week to 4.5% this week, although this percentage is still higher than the 4% of the overall activity that was reached by the adjustable-rate mortgages two weeks ago.
The refinance index increased 12% this week compared to last week, and the market composite index went up 11.1% as well compared to the previous week.
Katrina Gutierrez is a writer at GET.com, a personal finance website. Email: firstname.lastname@example.orgEditorial Disclosure: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.