The overall amount of mortgage applications saw a 4.3-percent increase, a recent survey shows.
The survey, from the Mortgage Bankers Association (MBA), also showed that the number of people applying to refinance their mortgages was up 17.7 percent. The 4.3 percent increase includes applications for refinancing.
Robert Dye, a senior economist at PNC Financial Group in Pittsburgh, told Bloomberg News prior to the MBA’s release that refinance activity will continue to increase as mortgage rates fall.
"It’s nice to see mortgage rates coming down; that’ll be a linchpin for the recovery," Dye told Bloomberg.
For a 30-year fixed mortgage the average interest rate fell to 5.05 percent, down from 5.34 percent. Points on a 30-year fixed mortgage also fell from 1.12 to 1.13.
Points went up to 1.07 from 1.06 for 15-year fixed mortgages, though the average interest rate fell from 4.83 to 4.59 percent.
The rate on a one-year adjustable mortgage also saw a drop. The average interest rate dropped from 6.58 to 6.47 percent, with points falling to 0.11.
As the government continues to increase its role in trying to help solve consumers’ debt problems, the share of government-insured home refinance applications has climbed back up after seeing some fluctuations. According to another report from the MBA, the share of government-insured home refinance applications sat at 33.6 percent in the month of June.