Mortgage Loan Rates Dip as Home Sales Stabilize
ThinkstockThe Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 0.2% in the group’s seasonally adjusted composite index, following a rise of 4.7% for the previous week. Mortgage loan rates decreased last…
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The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 0.2% in the group’s seasonally adjusted composite index, following a rise of 4.7% for the previous week. Mortgage loan rates decreased last week on three of four loan types to their lowest levels since late November.
The seasonally adjusted purchase index increased by 2% from the prior week’s report. On an unadjusted basis, the composite index decreased by 9% week-over-week. The unadjusted purchase index decreased by 3% for the week and is 12% lower year-over-year.
Mortgage rates continue to inch downward, with only the 5/1 ARM interest rate adding three basis points last week. Adjustable rate mortgage loans account for 7% of all applications.
The MBA’s refinance index decreased by 2%, after rising by 10% in the previous week. The share of refinancings fell by two points, totaling 62% of all applications.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.57% to 4.52%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.57% to 4.47%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.68% to 3.59%.
The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.23% to 3.25%.
Sales have held fairly stable in January after an initial recovery, which is good news for sellers. As inventories increase with better weather, buyers should get a break too.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.