Mortgage Loan Rates Still Climbing, Applications Continue Slipping

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 2.5% in the group’s seasonally adjusted composite index for the week ending April 27. Mortgage loan rates rose last week on all five loan types that the MBA tracks, and four again posted multiyear highs

On an unadjusted basis, the composite index decreased by 2% week over week. The seasonally adjusted purchase index was dropped 2% compared with the week ended April 20. The unadjusted purchase index decreased by 1% for the week and is now 5% higher year over year.

The MBA’s refinance index decreased by 4% week over week, and the percentage of all new applications that were seeking refinancing dipped week over week from 37.2% to 36.5%, its lowest level since September 2008.

Adjustable rate mortgage loans accounted for 6.7% of all applications, up from 6.5% in the prior week.

Mortgage loan rates have moved mostly sideways this week, according to Mortgage News Daily. Today’s announcement following the Federal Reserve’s board meeting is not expected to include a policy rate hike, but Fed watchers will be parsing the announcement for clues to the next hike. The most prevalent mortgage loan rate on a 30-year fixed-rate conforming loan fell into a range of 4.625% to 4.75% on Tuesday.

According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage rose from 4.73% to 4.80%, its highest level since September 2013. The rate for a jumbo 30-year fixed-rate mortgage jumped from 4.64% to 4.69%, also a high since September 2013. The average interest rate for a 15-year fixed-rate mortgage rose from 4.13% to 4.21%, its highest level since February 2011.

The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 3.98% to 4.03%. Rates on a 30-year FHA-backed fixed-rate loan rose from 4.71% to 4.81%, the highest level since July 2011.