Housing

Mortgage Interest Rates Up Slightly in Holiday Week

Housing development
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The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting an increase of 1.9% in the group’s seasonally adjusted composite index. That followed a drop of 0.2% for the previous week. This week’s report has also been adjusted to account for the July Fourth holiday. Mortgage loan rates increased on two types of loans and decreased on three other types.

The seasonally adjusted purchase index increased 4% from the prior week’s report. On an unadjusted basis, the composite index decreased by 19% week-over-week. The unadjusted purchase index decreased by 17% for the week, and it remains 10% lower year-over-year.

Adjustable rate mortgage loans accounted for 8% of all applications, unchanged from previous weeks.

The MBA’s refinance index increased by 0.1%, after falling by 1% in the previous week. The share of refinancings dropped from 53% to 52% of all applications.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.28% to 4.32%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.26% to 4.24%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.42% to 3.40%.

The contract interest rate for a 5/1 adjustable rate mortgage loan rose from 3.21% to 3.24%. Rates on a 30-year FHA-backed fixed rate loan increased from 3.99% to 4.02%.

The holiday weekend put a real crimp in mortgage applications last week, even though the number rose on a holiday-adjusted basis. The slight rise in mortgage loan rates did not help either. On an adjusted basis, last week’s composite index increase put a stop to a month-long string of decreases.

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