On an unadjusted basis, the composite index increased by 5% week over week. The seasonally adjusted purchase index rose by 3% compared to the week ended July 24. The unadjusted purchase index also rose by 3% for the week and is now 23% higher year over year.
The MBA’s refinance index increased by 6% week over week, and the percentage of all new applications that were seeking refinancing rose slightly from 50.6% to 51.3%.
Adjustable rate mortgage loans accounted for 6.8% of all applications, up from 6.6% in the prior week.
Most mortgage lenders continue to quote 30-year fixed rate mortgages at 4% to the top-tier borrowers, although rates of 3.875% are available, according to Mortgage News Daily. Comments Monday by Atlanta Federal Reserve Bank President Dennis Lockhart pushed rates a little higher on Tuesday. Lockhart’s comments led some to believe that the Fed will raise its policy rate sooner, rather than later.
According to Mortgage Daily News:
A higher Fed rate makes short term money more expensive for large financial institutions, which ultimately affects how expensive long term money is when they lend it to you. Bottom line, the Fed doesn’t set mortgage rates, but if markets expect the first hike to happen sooner, mortgage rates will typically rise.
ALSO READ: The Most Expensive Town in Each State
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage fell from 4.17% to 4.13%, its lowest level since May 15. The rate for a jumbo 30-year fixed-rate mortgage decreased from 4.12% to 4.08%, also the lowest rate since May. The average interest rate for a 15-year fixed-rate mortgage declined from 3.39% to 3.36%, also two-month low.
The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.04% to 3.02%, the lowest level since May. Rates on a 30-year FHA-backed fixed-rate loan dropped from 3.98% to 3.96%.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
