Oct. 7 (UPI) — Mortgage rates in the United States have fallen to new lows and spurred a flurry of applications to refinance, an industry report said Wednesday.
The Mortgage Bankers Association said in its weekly report that interest rates for a 30-year fixed-rate mortgage fell to 3.01% last week. Moreover, refinancing applications rose 8% and are 50% higher than they were last year at this time.
“Mortgage rates declined across the board last week — with most falling to record lows — and borrowers responded,” Joel Kan, MBA associate vice president of economic and industry forecasting, said in a statement. “The refinance index … hit its highest level since mid-August.”
The lower mortgage rates — which have sunk to record levels multiple times in recent months — have not corresponded, however, to a surge in applications from homebuyers.
While those applications are 21% higher year-to-year, they declined by 2%