The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting an increase of 2.8% in the group’s seasonally adjusted composite index, following a rise of 1.4% for the previous week. Interest rates rose on some mortgage types and fell on others last week.
The seasonally adjusted purchase index increased 3% from the prior week’s report. On an unadjusted basis, the composite index increased by 2% week-over-week. The unadjusted purchase index increased by 1% for the week and remains 11% lower year-over-year.
Adjustable rate mortgage loans accounted for 8% of all applications.
The MBA’s refinance index again increased by 3%, after rising by 3% in the previous week. The share of refinancings increased from 55% to 56% of all applications, the highest level since March.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage dropped from 4.29% to 4.28%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.18% to 4.22%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.44% to 3.47%.
The contract interest rate for a 5/1 adjustable rate mortgage loan remained unchanged at 3.10%. Rates on a 30-year FHA-backed fixed rate loan fell from 3.99% to 3.98%, the lowest since June 2013.
News from the housing market has not been very encouraging recently. New home sales are down, and expectations are that the downturn will persist through the rest of this year and into next.