Citigroup, Inc (NYSE: C) has seen mortgage applications increase by 60% during the last two months at its retail bank, according to a new report from the Wall Street Journal.
Applications for jumbo mortgages, or mortgages that are greater than $729,000 in value, are up 30%. The overall mortgage pipeline for Citigroup, Inc (NYSE: C) was up to slightly under $2 billion in June, up from less than $1 billion in February, according to Citigroup, Inc (NYSE: C).
Almost all of the new mortgages which have helped Citigroup, Inc (NYSE: C) revive its application volume come from jumbo mortgages and loans which conform to Fannie Mae and Freddie Mac customers. Most of the customers applying had previously gone elsewhere for their mortgages and 30% of the applications are new home purchases rather than refinances.
The increase in applications comes at a time when interest rates have fallen to 50 year loans as homebuyers have rushed to take advantage of federal home buying incentives. Citigroup, Inc (NYSE: C) decided to offer competitive rates without relaxing underwriting standards to spur demand.
Citigroup, Inc (NYSE: C) is currently offering a 30-year fixed rate jumbo mortgage loan at 5.00%, whereas its competitors are offering rates above 5.6%
