Mortgage Loan Rates Continue Seesaw Pattern
The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting an increase of 11.2% in the group's seasonally adjusted composite index, following a decline of 13.5% for the previous week. Mortgage loan rates decreased across the board last week.
The seasonally adjusted purchase index increased by 3% from last week's report. On an unadjusted basis, the composite index rose by 23% week-over-week. The unadjusted purchase index increased by 12% for the week, but it is up only 1% year-over-year.
The MBA's refinance index rose by 18%, after falling by 20% in the previous week.
The share of refinancings rose from 57% 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 4.80% to 4.75%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.84% to 4.83%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.83% to 3.81%.
The contract interest rate for a 5/1 adjustable rate mortgage loan dropped from 3.59% to 3.54%.
This week's report puts the mortgage business back where it was two weeks ago. All of last week's decreases in applications were essentially reversed. As for the mortgage rates, all pulled back a little, but over the two-week period all are several basis points higher. The trend in rates is definitely up.
Filed under: Housing