MLS Real Estate & Listings Blog

Long-term mortgage rates tumbled this week after the Fed cut a key short-term interest rate and on news that inflation in February was weaker than expected, Freddie Mac reported today.

The average rate on 30-year fixed mortgages dropped to 5.87 percent from last week’s 6.13 percent, and the average 15-year fixed rate plunged to 5.27 percent from 5.6 percent.

To qualify for these rates, borrowers must pay points, or fees that lenders charge for loan processing expressed as a percent of the loan, which this week averaged 0.5 on the 30- and 15-year loans.  more…

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Despite a considerable drop in long-term mortgage rates, borrowers last week were not breaking down the doors of lenders trying to get a piece of the action, the Mortgage Bankers Association reported today.

According to MBA, home loan application volume fell 2.9 percent last week on a seasonally adjusted basis from the previous week, led by a 4.6 percent decline in the refinance index and a 1 percent drop in the index that tracks purchase loans.  more…

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In an emergency move to prop up credit markets, the Federal Reserve cut the discount rate to 3.25 percent over the weekend and expanded the list of banks and financial institutions that can borrow money at that rate.

The Fed also announced Sunday that it was standing behind J.P. Morgan Chase’s move to buy troubled investment firm Bear Stearns Cos by providing up to $30 billion in financing that protects J.P. Morgan from losses.  more…

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An abrupt rise in interest rates helped cut mortgage application volume by 1.9 percent last week, the Mortgage Bankers Association reported today.

According to MBA, the seasonally adjusted decline was led by a 4.7 percent decrease in the index that tracks refinancings, despite a 1.4 percent gain in the purchase-loan index. As a result, the refinance share of applications fell to 50.6 percent from 52.4 percent two weeks ago, and the adjustable-rate mortgage (ARM) share dipped to 15.5 percent from 17.3 percent.  more…

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