Housing
Mortgage Loan Rates Falling, Slowing the Drop in Mortgage Applications
Published:
Last Updated:
The seasonally adjusted purchase index decreased by 2% from the last report. On an unadjusted basis, the composite index fell by 1% week-over-week. The unadjusted purchase index decreased by 2% for the week, and is up about 6% year-over-year.
The MBA’s refinance index fell by 1%, after sliding 1% in the previous week.
The share of refinancings remained unchanged at 63%, its lowest level in more than two years. Adjustable rate mortgage loans account for 7% of all applications, flat with the prior week.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage dropped from 4.68% to 4.58%. The rate for a jumbo 30-year fixed-rate mortgage decreased from 4.81% to 4.66%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.70% to 3.63%.
The contract interest rate for a 5/1 adjustable rate mortgage loan fell from 3.39% to 3.30%.
Mortgage rates are pulling back and that should help new home sales, once the housing inventory gets built back up. It is really a matter of perception more than anything. Interest rates for mortgage loans continue to be very low by historical standards.
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.