Mortgage Rates Fall and Applications Increase

October 9, 2009

According to the Mortgage Bankers Association, last week’s mortgage interest rates continued to drop, spurring a 16.4 percent rise from the week before in applications.

Refinance activity on mortgages increased from 65.3 percent in the week ending on September 25th to 66.3 percent in the week ending on October 2nd.

The average interest rate for a 30-year, fixed-rate mortgage was down 4.89 percent as of October 2nd, which was down from 4.94 percent the week before. This is the lowest level since May when it was 4.81 percent. Points increased from 0.94 to 1.13.

What does it all mean? With cheaper interest rates on mortgages, the loan will cost less in the long run. This will help to stimulate the housing market as payments become more affordable. It’s just a matter of time before the readjustment process for the economy passes and things become stable before returning to growth.

Looking for Maui real estate? See our Maui real estate listings, or you can always use our online Maui real estate search tool. If you need any help with our website or your pursuit of great Maui real estate, please send an email to Mark [email protected] or Lisa [email protected]. You can also call (866) 874-1942 toll free or Lisa’s cell at (808) 283-7426. Thanks for reading and have a wonderful weekend!

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