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.