Mortgage Loan Rates Made Mixed Moves as Applications Fell 5% Last Week

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The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 4.9% in the group’s seasonally adjusted composite index for the week ending June 22. Mortgage loan rate movements were mixed last week.

Mortgage loan rates didn’t show much movement again last week, with the 30-year fixed rate loan ending the week down 0.03%, according to Mortgage News Daily. Barring some unexpected event, this should be another quiet week with 10-year Treasury yields remaining right around their Tuesday level of 2.88%, down by 0.04%.

On an unadjusted basis, the MBA’s composite index decreased by 6% week over week. The seasonally adjusted purchase index also fell by 6% compared with the week ended June 15. The unadjusted purchase index decreased by 7% for the week and was 1% 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 rose from 36.8% to 37.6%.

Adjustable rate mortgage loans accounted for 6.5% of all applications, down from 7% in the prior week.

According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage ticked up from 4.83% 4.84%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.79% to 4.70%. The average interest rate for a 15-year fixed-rate mortgage increased from 4.27% to 4.29%.

The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 4.06% to 4.01%. Rates on a 30-year FHA-backed fixed-rate loan slipped from 4.82% to 4.81%.