Mortgage Loan Rates Ticked Higher Last Week, Keeping Buyers Away
The Mortgage Bankers Association (MBA) weekly report on mortgage applications noted an increase of 0.2% in the group’s seasonally adjusted composite index.
The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting an increase of 0.2% in the group’s seasonally adjusted composite index. That followed a rise of 2.8% for the previous week. Mortgage loan rate movements varied again last week.
The seasonally adjusted purchase index decreased 2% from the prior week’s report. On an unadjusted basis, the composite index decreased by 1% week-over-week. The unadjusted purchase index decreased by 4% for the week and is now 12% lower year-over-year.
Adjustable rate mortgage loans accounted for 7.8% of all applications, down slightly from 8.0% in the prior week.
The MBA’s refinance index increased by 1%, after rising by 3% in the previous week. The share of refinancings increased from 56% to 57% of all applications, the highest level since March.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage dropped from 4.28% to 4.25%. The rate for a jumbo 30-year fixed-rate mortgage remained unchanged at 4.22%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.47% to 3.48%.
The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.10% to 3.19%. Rates on a 30-year FHA-backed fixed rate loan rose from 3.98% to 3.99%.
House price increases are moderating and that should help boost home sales. Mortgage interest rates remain historically low, even though they are now more than a full point higher than the lows of early 2013.
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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.