Mortgage Interest Rates Post 22-Year Low
The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a rise of 6.2% in the group's seasonally adjusted composite index, compared with last week's rise of 4.5%. Unadjusted, the composite index rose by 6%.
Applications for refinancing rose by 8% (seasonally adjusted), while seasonally adjusted purchase applications increased by 1% from the previous week. Unadjusted, the purchase index fell by 4% compared with the previous week and rose by 9% compared with the same week a year ago.
The refinancing rate increased to 84% of all applications. About 97% of the applications were seeking fixed-rate loans, the same as last week's reading.
The average contract interest rate for a conforming 30-year fixed-rate mortgage decreased from 3.52% to 3.47%, the lowest rate ever in the 22-year history of the MBA survey. The rate for a jumbo 30-year fixed-rate mortgage increased, from 3.79% to 3.77%. The average interest rate for a 15-year fixed-rate mortgage decreased from 2.86% to 2.85%, another record low.
The contract interest rate for a 5/1 adjustable rate mortgage increased from 2.62% to 2.63%.
An MBA executive attributed the record low interest rates to "continued uncertainty due to the lack of resolution regarding the fiscal cliff."
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