Housing

Mortgage Loan Rates Rise Near Year-to-Date High

House for Sale
Thinkstock
The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning. It noted a week-over-week decrease of 4.6% in the group’s seasonally adjusted composite index for the week ending May 1, following a decrease of 2.3% for the week ending April 24. Mortgage loan rates increased on four popular loan types and decreased slightly on adjustable rate mortgage loans.

On an unadjusted basis, the composite index decreased by 4% week-over-week. The seasonally adjusted purchase index rose 1% compared to the week ended April 24. The unadjusted purchase index increased by 2% for the week and is now 12% higher year-over-year.

The MBA’s refinance index decreased 8% week-over-week, and the percentage of all new applications that were seeking refinancing dropped from 55% to 53%.

The decline in refinancing activity continues, and even though mortgage rates remain below 4% on all popular loan types, an increase in refinancing is unlikely until rates fall below 3.5%.

To underscore that point, a report on Tuesday from Mortgage Daily News noted that several major lenders are now charging mortgage rates of 4%, and that at that time only a single day so far this year has seen mortgage rates any higher. Keep an eye on Friday’s employment report. If the numbers are solidly above expectations, look for mortgage rates to continue rising. If the numbers are weak, rates could well pull back.

ALSO READ: 9 States With the Most Identity Theft Complaints

Adjustable rate mortgage loans accounted for 6.1% of all applications, up from 5.7% in the prior week.

The FHA share of all applications rose from 13.7% a week ago to 14.0%, and the VA share increased from 11.3% to 11.9%.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 3.85% to 3.93%. The rate for a jumbo 30-year fixed-rate mortgage increased from 3.82% to 3.91%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.14% to 3.19%.

The contract interest rate for a 5/1 adjustable rate mortgage loan fell from 2.88% to 2.87%. Rates on a 30-year FHA-backed fixed rate loan rose from 3.66% to 3.70%.

Cash Back Credit Cards Have Never Been This Good

Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

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.