Housing

Mortgage Loan Rates at Multi-Month Highs Last Week

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The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning, noting a week-over-week decrease of 4.7% in the group’s seasonally adjusted composite index for the week ending June 26. That followed an increase of 1.6% for the week ending June 19. Mortgage loan rates increased on all five loan types.

On an unadjusted basis, the composite index decreased by 5% week over week. The seasonally adjusted purchase index fell by 4% compared to the week ended June 19. The unadjusted purchase index dropped by 5% for the week and remains 14% higher year over year.

The MBA’s refinance index decreased by 5% week over week, and the percentage of all new applications that were seeking refinancing slipped from 49.0% to 48.9%.

Mortgage Daily News reported Tuesday that the most-often quoted conventional 30-year fixed rate for top-tier borrowers was 4.125% and that market momentum has set rates on a path lower. U.S. employment data, which will be reported on Thursday, and other economic data could reverse the trend, though, particularly if the reports come in much stronger than expected.

Adjustable rate mortgage loans accounted for 7% of all applications, unchanged from the prior week.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.19% to 4.26%, its highest level since last October. The rate for a jumbo 30-year fixed-rate mortgage increased from 4.14% to 4.21%, also a high since October. The average interest rate for a 15-year fixed-rate mortgage rose from 3.38% to 3.44%, a third eight-month high.

The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 3.04% to 3.09%. Rates on a 30-year FHA-backed fixed-rate loan rose from 3.96% to 4.04%, its highest level since last September.

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