Mortgage Rates, Loan Applications Both Rise
The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting an increase of 10.3% in the group’s seasonally adjusted composite index, following a drop of 3.1% for the previous week. Mortgage loan rates rose last week for all types of mortgage loans. That marks the first rise in more than a month.
The seasonally adjusted purchase index increased 9% from the prior week’s report. On an unadjusted basis, the composite index increased by 22% week-over-week. The unadjusted purchase index increased by 19% for the week, and remains 13% lower year-over-year.
Adjustable rate mortgage loans account for 8% of all applications, unchanged from last week.
The MBA’s refinance index increased by 11%, after slipping by 3% in the previous week. The share of refinancings rose from 53% to 54% of all applications.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.26% to 4.34%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.22% to 4.27%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.39% to 3.43%.
The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.11% to 3.18%. Rates on a 30-year FHA-backed fixed rate loan fell from 3.99% to 4.06%.
Mortgage loan rates rose slightly across the board last week, likely due to the jump in demand. Loan application numbers should continue showing improvement as the summer buying season heats up.