The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a increase of 4.7% in the group’s seasonally adjusted composite index. The seasonally adjusted purchase index increased by 4.00% from the prior week’s report.
On an unadjusted basis, the composite index increased by 7.0% week-over-week. The unadjusted purchase index increased by 2.0% for the week, but it is 15% lower year-over-year.
The MBA’s refinance index increased by 10%, and the share of refinancings rose by two points to 64% of all applications. Adjustable rate mortgage loans accounted for 7.0% of all applications, down from 8.0% the prior week.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.66% to 4.58%, the lowest level since November 2013. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.58% to 4.57%. The average interest rate for a 15-year fixed-rate mortgage fell from 3.72% to 3.68%.
The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.28% to 3.23%, the lowest level since December 2013.
The drop in interest rates in the past two weeks are in contrast with the recent trend of rising rates since November. Mortgage applications fell to their lowest level since December 2000 at the end of 2013, following the announcement by the U.S. Federal Reserve that it would begin tapering its $85 billion per month bond-buying program.
This turnaround in purchase applications could signal a strong spring season for the housing market.
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.