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Mortgage rates dropped throughout last week causing increased activity among Americans looking for a home loan, particularly those seeking to refinance their existing mortgage, according to the Mortgage Bankers Association (MBA).

The MBA, which measures week-over-week changes in the number of people applying for a mortgage to either purchase a home or refinance their current home loan, showed overall mortgage activity grew 1.7 percent for the week ending July 11.

Homeowners seeking to refinance their mortgage fueled the growth as refinance applications increased 6.9 percent. The number of applications for a mortgage to purchase a home fell 1.7 percent.

According to Quicken Loan Chief Economist Bob Walters, the current interest rate environment, combined with deeply discounted real estate prices and greater access to credit via loans guaranteed by the Federal Housing Administration, is helping the housing market draw the interest of an increasing number of people.

“Long-term mortgage rates fell over the past week, which has provided an incentive for folks seeking to refinance their adjustable rate mortgages before they reset to a potentially higher rate,” Walters commented.

“FHA loans also continue to play an increasingly substantial role in the lending environment due to its more relaxed credit and equity guidelines. More consumers are becoming aware of these programs, and that they can still refinance or obtain a home mortgage, even if they have less than 10% equity or for a down payment, thanks to FHA loans,” he concluded.

Related Info

• The quick way to FHA is FHA Express!
• Get today’s mortgage rates.
• Should you refinance? Use our mortgage calculators to find out how much you could save!

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