Mortgage Loan Applications Rise Slightly as Loan Rates Push Higher
The seasonally adjusted purchase index increased by 5% from the last report. On an unadjusted basis, the composite index rose by 16% week-over-week. The unadjusted purchase index increased by 14% for the week, and is up about 6% year-over-year.
The MBA’s refinance index rose 5%, week-over-week, off last week’s six-month low.
The share of refinancings rose slightly from the previous week’s total of 68% to 69%. This marks the end of four consecutive weekly decline in refinancings, but the total remains close to its lowest level in nearly two years. Adjustable rate mortgage loans now account for 7% of all applications, up 1% from last week.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage rose from 4.07% to 4.15%. The rate for a jumbo 30-year fixed-rate mortgage increased, from 4.20% to 4.25%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.23% to 3.32%, its highest level since April 2012.
The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 2.76% to 2.78%.
Interest rates continue to rise and to have an impact on new loans. Refinancings remain depressed as interest rates rise, and that is likely to continue unless rates begin falling again.