Mortgage Loan Rates Stifling Applications

Before you go, we thought you'd like these...
Before you go close icon

New homeThe Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a drop of 4.6% in the group's seasonally adjusted composite index, following a decline of 4.7% for the previous week. Mortgage loan rates increased across the board last week.

The seasonally adjusted purchase index increased by 1% from the last report. On an unadjusted basis, the composite index again fell 5% week-over-week. The unadjusted purchase index decreased by 0.4% for the week, and is up about 5% year-over-year.

The MBA's refinance index fell 8% after dropping 4% in the previous week.

The share of refinancings fell a point to 62%. Adjustable rate mortgage loans account for 6% of all applications, up slightly from the prior week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.56% to 4.68%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.57% to 4.74%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.6% to 3.71%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.36% to 3.44%.

Refinancings slipped again to a two-year low as interest rates bounced higher after falling last week, but purchase applications remain higher than they were a year ago.

Later today we will hear from the National Association of Realtors with its report on existing home sales. The consensus estimate calls for a seasonally adjusted annual rate in July of 5.13 million, up about 50,000 from June levels.

Filed under: Housing
Read Full Story

People are Reading