The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting a decrease of 0.2% in the group’s composite index compared with last week’s total. Applications for refinancing rose 1% (seasonally adjusted), while seasonally adjusted purchase applications decreased by 4% from the previous week. Unadjusted, the purchase index rose more than 18% compared with the previous week and rose 8% compared with the same week a year ago.
Refinancings now account for 81% of total applications, up from 80% a week ago. About 95% of the applications were seeking fixed-rate loans.
The average contract interest rate for a conforming 30-year fixed-rate mortgage fell slightly from 3.75% to 3.72%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 4.00% to 3.99%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.07% to 3.03%, the lowest rate in the history of the survey.
The contract interest rate for a 5/1 adjustable rate mortgage also declined, from 2.63% to 2.61%.
The slight slowdown from the previous week probably does not indicate much except that applications for mortgages remain steady. The slightly lower interest rates do not indicate much change either, but given the FOMC’s decision to begin purchasing agency mortgage-backed securities, interest rates could continue to decline slowly by as much as another 50 basis points.
Paul Ausick
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
