Housing
Mortgage Loan Rates Remain Low as Applications Rise
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The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week increase of 9.3% in the group’s seasonally adjusted composite index for the week ending June 3. Mortgage loan rates mostly moved lower last week.
On an unadjusted basis, the composite index decreased by 1.3% week over week. The seasonally adjusted purchase index increased by 12% compared with the week ended May 27. The unadjusted purchase index decreased by 12% for the week and is now 6% higher year over year.
The MBA’s refinance index increased by 7% week over week, and the percentage of all new applications that were seeking refinancing fell from 54.3% to 53.8%.
Adjustable rate mortgage loans accounted for 5% of all applications, unchanged from the previous week.
Mortgage loan rates remain near three-year lows, and movements in the rates have been mostly sideways, according to Mortgage News Daily:
While there are a few aggressive lenders quoting 3.5% on conventional 30yr fixed loans, 3.625% is the most prevalent quote on top tier scenarios. 3.75% had been more common until last week’s jobs report sent rates quickly lower, and all but eliminated the possibility of a Fed rate hike in June. The Fed Funds Rate does not directly dictate mortgage rates, but increasing expectations for Fed rate hikes tend to coincide with increasing mortgage rates.
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 3.85% to 3.83%. The rate for a jumbo 30-year fixed-rate mortgage remained unchanged at 3.81%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.12% to 3.11%.
The contract interest rate for a 5/1 adjustable rate mortgage loan slipped from 3.00% to 2.96%. Rates on a 30-year FHA-backed fixed-rate loan increased from 3.65% to 3.71%.
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