Mortgage applications in New York City leaped by 2.7% the past week as a result of very low interest, so far the lowest in decades. This move will reduce their monthly loan payments considerably. A 2.8% increase in refinance applications was also seen while the quantity of home loans rose 1.8%.
Since May 2009, refinancing is now at its top levels and contributes 83% of all new loans, its highest share since January of 2009. Despite this positive streak, home sales continue to be shaky as home buyers are still worried about employment issues and tight loan prerequisites. Figures demonstrate that purchase activity is down by 40% since the termination of federal tax credits for home purchasers last April.
In the same survey carried out by The Mortgage Bankers Association, the average rate for a 30 year fixed loan fell to 4.43% from a 4.55% in the past week. On a 15-year fixed mortgage, rates were reduced to 3.88% from 3.91%.
Mortgage applications rise 2.7% on low rates
