Mortgage Loan Rates Rise for 2nd Straight Week

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The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning. It noted a week-over-week decrease of 13.2% in the group’s seasonally adjusted composite index for the week ending February 13, following a drop of 9% for the week ending February 6. Mortgage loan rates increased on all five types of loans for the second consecutive week.

On an unadjusted basis, the composite index decreased by 12% week-over-week. The seasonally adjusted purchase index decreased 7% compared to the week ended February 6. The unadjusted purchase index fell by 2% for the week and remains 1% higher year-over-year.

Adjustable rate mortgage loans accounted for 5.3% of all applications, down from 5.7% in the prior week.

The MBA’s refinance index decreased 16% week-over-week, and the percentage of all new applications that were seeking refinancing declined from 69% in the prior week to 66%.

The FHA share of all applications rose from 14.1% a week ago to 15.2%, and the VA share decreased from 8.3% to 8.0%.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 3.84% to 3.93%. The rate for a jumbo 30-year fixed-rate mortgage increased from 3.90% to 3.92%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.15% to 3.24%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.07% to 3.09%. Rates on a 30-year FHA-backed fixed rate loan rose from 3.72% to 3.73%.

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