Mortgage Loan Rates Higher for Second Consecutive Week
The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week decrease of 0.8% in the group’s seasonally adjusted composite index for the week ending October 30. That followed a decrease of 3.5% for the week ending October 23. Mortgage loan rates increased slightly again on all types of loans last week.
On an unadjusted basis, the composite index decreased by 1% week over week. The seasonally adjusted purchase index fell by 1% compared with the week ended October 23. The unadjusted purchase index decreased by 2% for the week and is now 20% higher year over year.
The MBA’s refinance index decreased by 1% week over week and the percentage of all new applications that were seeking refinancing rose from 59.5% to 59.7%.
Adjustable rate mortgage loans accounted for 6.7% of all applications, up from 6.6% the prior week.
Mortgage News Daily noted that “the past week has seen rates move up at the fastest pace since early June—itself only one of a handful of similar examples in 2015.”
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage rose from 3.98% to 4.01%. The rate for a jumbo 30-year fixed-rate mortgage increased from 3.88% to 3.90%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.22% to 3.24%.
The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 3.03% to 3.12%. Rates on a 30-year FHA-backed fixed-rate loan rose from 3.80% to 3.81%.