The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning. It noted a week-over-week increase of 7.3% in the group’s seasonally adjusted composite index for the week ending December 18, following a decrease of 1.1% for the week ending December 11. Mortgage loan rates increased on all fixed-rate loans and decreased slightly on adjustable-rate loans.
On an unadjusted basis, the composite index increased by 7% week over week. The seasonally adjusted purchase index increased by 4% compared with the week ended December 11. The unadjusted purchase index increased by 2% for the week and is now 37% higher year over year.
The MBA’s refinance index increased by 11% week over week, and the percentage of all new applications that were seeking refinancing rose from 60.7% to 62.8%.
Adjustable rate mortgage loans accounted for 6.1% of all applications, up from 6% the prior week.
In its report Tuesday on existing home sales, the National Association of Realtors noted the impact of new lending regulations and suggested that may have been at least partially responsible for the plunge in sales during November. Mortgage Daily News believes the impact is limited however:
The uptick in the share of delayed closings and the total time mortgage-related transactions took to close suggests that new disclosure requirements from the Consumer Financial Protection Bureau that took effect in early October had an impact on the housing market. However, the impact appears to be limited as the majority of mortgage-related home sales continued to close on time under the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule.
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.14% to 4.16%. The rate for a jumbo 30-year fixed-rate mortgage increased from 4.01% to 4.04%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.38% to 3.45%.
The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.25% to 3.24%. Rates on a 30-year FHA-backed fixed-rate loan rose from 3.90% to 3.92%.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
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.