Mortgage Loan Rates Falling, Slowing the Drop in Mortgage Applications

House for SaleThe Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a drop of 1.2% in the group's seasonally adjusted composite index, following a drop of 2.6% for the previous week. Mortgage loan rates fell in all categories last week.

The seasonally adjusted purchase index decreased by 2% from the last report. On an unadjusted basis, the composite index fell by 1% week-over-week. The unadjusted purchase index decreased by 2% for the week, and is up about 6% year-over-year.

The MBA's refinance index fell by 1%, after sliding 1% in the previous week.

The share of refinancings remained unchanged at 63%, its lowest level in more than two years. Adjustable rate mortgage loans account for 7% of all applications, flat with the prior week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage dropped from 4.68% to 4.58%. The rate for a jumbo 30-year fixed-rate mortgage decreased from 4.81% to 4.66%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.70% to 3.63%.

The contract interest rate for a 5/1 adjustable rate mortgage loan fell from 3.39% to 3.30%.

Mortgage rates are pulling back and that should help new home sales, once the housing inventory gets built back up. It is really a matter of perception more than anything. Interest rates for mortgage loans continue to be very low by historical standards.

Filed under: Housing
Read Full Story


DJIA 22,072.71 73.72 0.34%
NASDAQ 6,362.81 29.80 0.47%
S&P 500 2,472.84 8.23 0.33%
NIKKEI 225 19,729.28 -24.03 -0.12%
HANG SENG 27,409.07 234.11 0.86%
DAX 12,263.86 86.82 0.71%
USD (per EUR) 1.17 0.00 -0.35%
USD (per CHF) 0.97 0.00 0.27%
JPY (per USD) 110.83 0.24 0.22%
GBP (per USD) 1.29 0.00 -0.10%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.