Mortgage Loan Rates Ticked Higher Last Week
The Mortgage Bankers Association report on mortgage applications noted a week-over-week decrease in the group’s seasonally adjusted composite index for the week ending January 23.
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The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week decrease of 3.2% in the group’s seasonally adjusted composite index for the week ending January 23. That followed a rise of 14.2% for the two-week period ending January 9. Mortgage loan rates increased on all types of loans during the week.
On an unadjusted basis, the composite index decreased by 12% week-over-week. The seasonally adjusted purchase index decreased 0.1% compared to the week ended January 16. The unadjusted purchase index fell by 4% for the week and is now 1% higher year-over-year.
Adjustable rate mortgage loans accounted for 5.7% of all applications, down from 6.4% in the prior week.
The MBA’s refinance index decreased 12% week-over-week, and the percentage of all new applications that were seeking refinancing declined from 74% in the prior period to 71%.
The FHA share of all applications rose from 8% a week ago to 9.1%, and the VA share increased from 9.4% to 10.7%.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 3.80% to 3.83%. The rate for a jumbo 30-year fixed-rate mortgage increased from 3.86% to 3.87%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.10% to 3.15%.
The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 2.87% to 2.95%. Rates on a 30-year FHA-backed fixed rate loan rose from 3.66% to 3.71%.
The MBA also revised the data it reported for the two-week period ending January 16.
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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.