Average home finance costs inched up this week because of huge demand.
A surge in home financing volumes is pushing up mortgage rates.
So many homeowners and buyers are trying to take advantage of historically low mortgage costs that the industry has become swamped. That’s caused some mortgage firms to bump up their borrowing costs to try and better control the financing flows.
“As refinance applications continue to surge and lenders work to manage capacity, the 30-year fixed-rate mortgage ticked up from last week’s all-time low,” Sam Khater, Freddie Mac’s chief economist, said in the mortgage company’s weekly report. “Mortgage rates remain at extraordinary levels, and many homeowners are smartly weighing their options to refinance, potentially saving themselves money.”
This week, nationwide long-term mortgage rates averaged 3.36%, up from last week’s record low 3.29%.
A year ago, 30-year fixed rate mortgage averaged 4.31% nationwide.
Last week, U.S. mortgage applications soared 55.4%.
Home refinancing applications were up almost 80% to their highest level in a decade, according to the Mortgage Bankers Association.
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By Steve Brown
9:24 AM on Mar 12, 2020