Housing
Mortgage Loan Rates Rise Slightly, Home Purchases Fall to 1995 Level
Published:
Last Updated:
The seasonally adjusted purchase index decreased by 4% from the prior week’s report. On an unadjusted basis, the composite index decreased by 7% week-over-week. The unadjusted purchase index increased by a slight 0.1% for the week and is 15% lower year-over-year.
ARM loans account for 8% of all applications, unchanged from a week ago.
The MBA’s refinance index decreased by 11%, after declining by 3% in the previous week. The share of refinancings fell by three points to 58% of all applications, the lowest level since last September.
The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.50% to 4.53%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.45% to 4.47%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.55% to 3.56%.
The contract interest rate for a 5/1 adjustable rate mortgage loan fell from 3.20% to 3.17%.
The seasonally adjusted purchase index is at its lowest point since 1995. The MBA’s chief economist said, “Purchase applications were little changed on an unadjusted basis last week, but this is the time of year we would expect a significant pickup in purchase activity, and we are not seeing it.” He did not blame the weather, but cold and snow over much of the United States must have been at least a contributing factor to the slide.
The sharp drop in the purchase index to 1995 levels is a very weak showing. Another point worth noting is that the mortgage loan rates for a jumbo loan remain lower than the rates for a conforming loan. Perhaps lenders may be trying to attract more creditworthy customers now that loan rules have changed.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
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.