The Mortgage Bankers Association released its weekly report on mortgage applications this morning, noting a 4.3% decline in the group’s composite index compared with last week’s total. Applications for refinancing fell 6% (seasonally adjusted), while purchase applications increased by about 1% from the previous week. Unadjusted, the purchase index dropped 1% compared with the same week a year ago.
Refinancings now account for 79% of total applications, down from 80% a week ago. About 96% of the applications were seeking fixed-rate loans.
The average contract interest rate for a conforming 30-year fixed-rate mortgage fell slightly from 3.86% to 3.80%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 4.11% to 4.06%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.15% to 3.12%.
The contract interest rate for a 5/1 adjustable rate mortgage also declined, from 2.74% to 2.68%.
Recent data on the housing market indicates that home sales prices are rising and banks are loosening lending requirements, making home purchases a little more attractive. The refinancing index is at its lowest point since mid-May of this year.
Mortgage rates have come down to about where they were two weeks ago.
Paul Ausick
Escape Credit Card Debt Quicksand With a 0% Card Today (sponsor)
Looking for a smarter way to tackle your credit card debt? A balance transfer card could be your ticket to financial freedom, finally eliminating your debt once and for all. We’ve assembled a list of the top balance transfer cards available today. Many offer a 0% introductory APR, giving YOU the chance to pay down your balance without the added cost of interest. Even better, many come with no annual fee—so you can focus on eliminating debt and keeping more money in your pocket. Click here to get started today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
