The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting an increase of 2.7% in the group’s seasonally adjusted composite index following a rise of 1.6% in the previous week. Mortgage loan rates remained flat or fell slightly on all types of loans last week.
The seasonally adjusted purchase index decreased 1% from the prior week’s report to its lowest level since February. On an unadjusted basis, the composite index decreased by 3% week-over-week. The unadjusted purchase index decreased by 2% for the week, and remains 10% lower year-over-year.
Adjustable rate mortgage loans continue to account for 8% of all applications, unchanged from previous weeks.
The MBA’s refinance index decreased by 4% after rising by 4% in the previous week. The share of refinancings decreased from 55% to 54% of all applications.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage remained unchanged for the week at 4.35%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.26% to 4.24%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.51% to 3.48%.
The contract interest rate for a 5/1 adjustable rate mortgage loan dropped from 3.32% to 3.24%. Rates on a 30-year FHA-backed fixed rate loan fell from 4.06% to 4.04%.
Since interest rates jumped early last summer, they have mostly remained in a narrow band. Some market participants see a change coming in that stability, but the direction of the next big interest rate move is debatable. The most logical direction is higher because we are already at near-historic lows.
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