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FHA refinancing soars in week

WASHINGTON, June 20 (UPI) -- Government refinancing activity more than doubled over the week with lower premiums available, the Mortgage Bankers Association in Washington said Wednesday.

U.S. mortgage applications decreased 0.8 percent from the previous week, while the Refinancing Index rose 1 percent, the MBA said.

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But "Federal Housing Administration refinance volume exploded to an all-time high, more than doubling over the week," said MBA vice president of research Michael Fratantoni.

The volume of FHA refinancing activity soared as streamlined refinance loans came fully into effect.

"Borrowers seized the opportunity to lower their mortgage rates without increasing their FHA premiums," Fratantoni said.

In the week, interest rates for 30-year, fixed-rate conforming mortgages fell from 3.88 percent to 3.87 percent, matching the lowest rate in the history of the survey, with average points rising from 0.43 to 0.49.

Interest rates for 15-year, fixed-rate contracts rose from 3.23 percent to 3.25 percent.

Points for 15-year loans fell from 0.48 to 0.45.

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