Mortgage refinancing requests for existing homes have reached their lowest level of more than 17.5 years, although the cost of servicing 30-year mortgages has fallen last week, according to data of Mortgage Bankers Association (MBA). The Washington-based organization said its seasonally adjusted housing refinancing index fell by 3.8% to 958.5 points during the previous week. This is the lowest weekly level since December 2000.
The share of weekly Mortgage Refinancing activity has reached its lowest level since August 2008, to 34.8% of the total number of applications. During the previous week it was 37.2%, according to the MBA data.
The interest rates on 30-year fixed-rate mortgage loans reached an average of 4.76% compared to 4.79% a week earlier.
At the same time, the average interest rate on 30-year mortgage loans backed by the Federal Housing Administration, which is often used by first-time buyers, reached 4.80% compared to 4.78% in the previous week.
The seasonally adjusted MBA measure of loan applications for housing loans, which predicts future housing market activity, rose by 6.5% last week to 261.5 points. This is the highest weekly level of the week starting April 20th.
The seasonally adjusted index of the association for total mortgage loan applications grew by 2.5% to 372.6 points last week.