Mortgage Applications, Interest Rates Drop Again

Refinancings now account for 79% of total applications, down from 80% a week ago. About 95% of the applications were seeking fixed-rate loans.

The average contract interest rate for a conforming 30-year fixed-rate mortgage fell slightly from 3.80% to 3.78%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 4.06% to 4.05%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.12% to 3.10%.

The contract interest rate for a 5/1 adjustable rate mortgage also declined, from 2.68% to 2.64%.

There has been little change in the mortgage application rate for some time now. The purchase index for essentially has been moving sideways for nearly two years. Increases in home prices as distressed properties clear have boosted prospects for new home builders, but growth remains sluggish.

Paul Ausick