Housing

Refinancings Rise as Mortgage Loan Rates Track Lower

Mansion with chairs and palmsThe Mortgage Bankers Association (MBA) released its weekly report on mortgage applications this morning, noting an increase of 1.8% in the group’s seasonally adjusted composite index following a rise of 0.2% for the previous week.

The seasonally adjusted purchase index decreased by 1.4% from the last report. On an unadjusted basis, the composite index rose by 2% week-over-week. The unadjusted purchase index decreased by 0.5% for the week and is up 13% year-over-year.

The share of refinancings remained unchanged from the previous week at 75%. Adjustable rate mortgage loans now account for 4% of all applications, also unchanged from last week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage fell from 3.65% to 3.60%. The rate for a jumbo 30-year fixed-rate mortgage increased from 3.75% to 3.80%. The average interest rate for a 15-year fixed-rate mortgage dropped from 2.91% to 2.89%.

The contract interest rate for a 5/1 adjustable rate mortgage loan fell from 2.89% to 2.84%.

Refinancings rose rather sharply in the past week, up 3% compared with a rise of just 0.3% in the prior week. The conforming 30-year fixed rate mortgage is at its lowest point since December.

Later this morning we’ll get a report from the U.S. Census Bureau on construction spending in March. The consensus estimate is for spending to have risen by 0.6% over the February spending.

 

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