The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting an increase of 2.8% in the group’s composite index compared with last week’s total. Applications for refinancing rose 3% (seasonally adjusted), while seasonally adjusted purchase applications increased by 1% from the previous week. Unadjusted, the purchase index rose fell 0.3% compared with the previous week and rose 5% compared with the same week a year ago.
Refinancings now account for 81.2% of total applications, up from 81% a week ago. About 96% of the applications were seeking fixed-rate loans.
The average contract interest rate for a conforming 30-year fixed-rate mortgage fell slightly from 3.72% to 3.63%. The rate for a jumbo 30-year fixed-rate mortgage also fell, from 3.99% to 3.87%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.03% to 2.98%, the lowest rate in the history of the survey..
The contract interest rate for a 5/1 adjustable rate mortgage remained unchanged at 2.61%.
The increase in mortgage applications from the previous week is pretty much consistent with the range in which the number has been fluctuating for the past several months. Interest rates fell sharply, which may indicate that the FOMC’s decision to purchase mortgage-backed securities is working already to lower rates and encourage more lending. Still early days though.
Paul Ausick
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
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.