Mortgage Loan Rates Remained Steady Last Week, Applications Slid 6%

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The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 6.2% in the group’s seasonally adjusted composite index for the week ending June 23. During the week, mortgage loan rates were essentially steady on the loan types that the MBA tracks.

On an unadjusted basis, the composite index decreased by 7% week over week. The seasonally adjusted purchase index decreased by 4% compared with the week ended June 16. The unadjusted purchase index decreased by 5% for the week and is now 8% higher year over year.

The MBA’s refinance index decreased by 9% week over week and the percentage of all new applications that were seeking refinancing dipped from 46.6% to 45.6%.

Adjustable rate mortgage loans accounted for 7% of all applications, up from 7.5% in the prior week.

Mortgage rates remain effectively at eight-month lows, according to a report Monday in Mortgage News Daily, with the most prevalent 30-year fixed-rate loans available in a range of 3.875% to 4% and 15-year fixed-rate loans available in a range of 3.125% to 3.25%.

According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage remained unchanged for a second consecutive week at 4.13%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.08% to 4.09%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.40% to 3.39%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.26% to 3.3%. Rates on a 30-year FHA-backed fixed-rate loan slipped from 4.04% to 4.02%.