Mortgage Applications Continue to Rise on Refinancing; Interest Rates Rise Slightly

The Mortgage Bankers Association released its weekly report on mortgage applications this morning, noting a 0.2% rise in the group’s composite index compared with last week’s total. Applications for refinancing rose 0.8% to the highest level since April 2009, while purchase applications declined by about 2% from the previous week.

Refinancings now account for 81% of total applications, with more than 95% of the applications seeking fixed-rate loans.

The average contract interest rate for a conforming 30-year fixed-rate mortgage rose slightly from 3.74% to 3.75%. The rate for a jumbo 30-year fixed-rate mortgage also rose, from 3.99% to 4.01%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.07% to 3.09%.

The contract interest rate for a 5/1 adjustable rate mortgage also rose slightly, from 2.68% to 2.73%.

After posting new all-time lows for several weeks in a row, mortgage interest rates for all types of loans rose slightly this week. Although still very low, rates could be rising as housing prices rise and buyers are beginning to return to the housing market.

Paul Ausick