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Wednesday, March 18, 2009

Low Rates Boost Mortgage Activity

From Realtor Magazine Online, Daily Real Estate News March 18, 2009

Mortgage applications zoomed upward last week, with the index rising 21.2 percent on a seasonally adjusted basis to 876.9 from 723.4 the previous week, according to the Mortgage Bankers Association.

On an unadjusted basis, the index increased 20.7 percent compared to the previous week and was up 31.2 percent from the same week a year ago.

Much of the increase was in refinances, reflecting a significant decline in rates. The refinance index increased 29.6 percent, while the purchase index was up only 1.5 percent. The refinance share of mortgage activity reached 72.9 percent.

Average interest rates were down:

* 30-year fixed-rate mortgages decreased to 4.89 percent from 4.96 percent;
* 15-year fixed-rate mortgages decreased to 4.52 percent from 4.54 percent;
* 1-year ARMs decreased to 6.20 percent from 6.21 percent.

Source: Mortgage Bankers Association (03/18/2009)

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