Mortgage Loan Rates Moderate, Lending Up

Mansion with chairs and palms
Mansion with chairs and palms

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a rise of 1.3% in the group's seasonally adjusted composite index following a decline of 2.5% for the previous week. Mortgage loan rates decreased across the board last week.

The seasonally adjusted purchase index decreased by 0.4% from the last report. On an unadjusted basis, the composite index rose 0.3% week-over-week. The unadjusted purchase index decreased by 3% for the week, but is up about 6% year-over-year.

The MBA's refinance index rose 2% after dropping 5% in the previous week.

The share of refinancings rose from 60% to 61%. Adjustable rate mortgage loans account for 7% of all applications.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.8% to 4.73%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.78% to 4.71%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.84% to 3.75%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.5% to 3.49%.

Mortgage interest rates remain near two-year highs and the decline in refinancings has been halted, at least for one week.

Purchase applications remain higher than they were a year ago and that is the best news out of the reports for the past few weeks. The modest increase in refinancings does not signal anything in particular.

Filed under: Housing

Originally published