Mortgage rates remained near historic lows this week, unleashing a deluge of phone calls and emails to mortgage companies from homeowners looking to refinance their existing loans.
Those who want to take advantage of the opportunity need to be proactive and well-organized, says Kirk Chivas, a mortgage broker at First Commerce Financial, a mortgage company in Wixom, Michigan.
“The people who call in, email in or complete a form online are the people we’re helping. We haven’t even begun to pick up the phone and start dialing because there are so many inquiries coming to us,” Chivas says.
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Homeowners should expect to start with a quick conversation about their current loan, the last time they refinanced, how long they plan to keep their home and whether they’re paying for mortgage insurance. If the numbers make sense — and Chivas says they often do — the process moves forward.
Patience is important, Chivas says, because lenders are “thoroughly backed up,” trying to move the sudden flood of applications through a full-to-bursting pipeline.
The volume of new applications surged 14.2% in the week ending July 1 and another 7.2% in the week ending July 8, compared with the prior weeks, according to the Mortgage Bankers Association. The recent week’s data were adjusted to account for the Fourth of July holiday. Refinances accounted for 64% of mortgage application activity in the recent week, up from 58.1% 2 weeks earlier.
Rates this week
The benchmark 30-year fixed-rate mortgage rose this week to 3.57% from 3.52%, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.17%. Four weeks ago, the rate was 3.69%.
The mortgages in this week’s survey had an average total of 0.23 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 3.91%. This week’s rate is 0.34 percentage points lower than the 52-week average.
- The benchmark 15-year fixed-rate mortgage remained unchanged, at 2.85%.
- The benchmark 5/1 adjustable-rate mortgage rose to 3.04% from 2.95%.
- The benchmark 30-year fixed-rate jumbo mortgage rose to 3.67% from 3.64%.
Weekly national mortgage survey
Results of Bankrate.com’s July 13, 2016, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:
| 30-year fixed | 15-year fixed | 5-year ARM | |
|---|---|---|---|
| This week’s rate: | 3.57% | 2.85% | 3.04% |
| Change from last week: | +0.05 | N/C | +0.09 |
| Monthly payment: | $747.39 | $1,127.59 | $699.21 |
| Change from last week: | +$4.62 | N/C | +$8 |
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