Mortgage Loan Rates Rise as Applications Increase

Print Email

The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week increase of 2.3% in the group’s seasonally adjusted composite index for the week ending May 20. Mortgage loan rates increased on all types of mortgage loans last week.

On an unadjusted basis, the composite index increased by 2% week over week. The seasonally adjusted purchase index increased by 5% compared with the week ended May 13. The unadjusted purchase index increased by 4% for the week and is now 17% higher year over year.

The MBA’s refinance index increased by 0.4% week over week, and the percentage of all new applications that were seeking refinancing rose from 54.6% to 53.7%.

Adjustable rate mortgage loans accounted for 5.7% of all applications, up from 5.5% in the previous week.

An interesting note from Inside Mortgage Finance was published Tuesday. JPMorgan Chase & Co. (NYSE: JPM) has replaced Wells Fargo & Co. (NYSE: WFC) as the country’s largest originator of non-conforming (jumbo) loans. Of some $77 billion in first-quarter jumbo loans, Chase funded $13.03 billion, up 10.5% sequentially.

According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 3.82% to 3.85%. The rate for a jumbo 30-year fixed-rate mortgage also rose, from 3.74% to 3.82%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.02% to 3.06%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 2.94% to 3.09%. Rates on a 30-year FHA-backed fixed-rate loan increased from 3.63% to 3.70%.