Mortgage Interest Rates Rising Again

The seasonally adjusted purchase index decreased 5% from the prior week’s report. On an unadjusted basis, the composite index decreased by 10% week-over-week. The unadjusted purchase index decreased by 6% for the week and remains 15% lower year-over-year.

Adjustable rate mortgage loans account for 8% of all applications, unchanged from last week.

The MBA’s refinance index decreased by 13%, after rising by 11% in the previous week. The share of refinancings dropped from 54% to 52% of all applications.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.34% to 4.36%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.27% to 4.32%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.43% to 3.5%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.18% to 3.20%. Rates on a 30-year FHA-backed fixed rate loan rose from 4.06% to 4.07%.

Mortgage loan rates rose across the board again last week, contributing to the downturn in mortgage applications. The decline in refinancings illustrates how sensitive borrowers are to even small changes in mortgage interest rates.

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