Who says the refinancing boom can’t go on and on and on?
According to new figures compiled by the Mortgage Bankers Association, residential loan applications increased 1% for the week ending July 20 (from the week prior) but with refinancings accounting for 81% of all new business.
Over the past four quarters refis have averaged 68% of fundings, according to figures compiled by National Mortgage News and the Quarterly Data Report.
In the week-ago reading, refi applications accounted for 80% of all new business.
And it appears the strong application flow won’t stop any time soon. On Tuesday the yield on the benchmark 10-year Treasury fell to 1.39%, setting yet another all-time low as investors sought a safe haven from both the stock market and Europe.
Mortgage bankers continue to report strong application volumes and profit margins. However, the purchase money business remains weak.
The MBA said the average rate charged on a 30-year conventional FRM held steady at 3.74% last week. The average jumbo rate rose slightly to 3.99%, up one basis point. But the rate charged on a 30-year FHA mortgage fell to 3.52%, down 3 basis points and setting a new all-time low.
