The Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday morning. It noted a week-over-week increase of 8.2% in the group’s seasonally adjusted composite index for the week ending February 12. For the fourth consecutive week, mortgage loan rates for all types of loans decreased last week.
On an unadjusted basis, the composite index increased by 10% week over week. The seasonally adjusted purchase index decreased by 4%, compared with the week ended February 5. The unadjusted purchase index increased by 2% for the week and is now 30% higher year over year.
The MBA’s refinance index increased by 16% week over week, and the percentage of all new applications that were seeking refinancing rose from 61.2% to 64.3%, its highest level in a year.
Adjustable rate mortgage loans accounted for 6.7% of all applications, up from 6.4% in the previous week.
Mortgage News Daily noted that mortgage rates fell to a low of 3.5% on loans to top-tier borrowers last week, but they have begun creeping back to 3.625%, with some lenders returning to 3.75% rate. Last week’s lending rates were the lowest in a year.
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According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 3.91% to 3.83%, its lowest level since April 2015. The rate for a jumbo 30-year fixed-rate mortgage decreased from 3.76% to 3.74%, the lowest rate since December 2012. The average interest rate for a 15-year fixed-rate mortgage fell from 3.18% to 3.11%, again the lowest rate since April 2015.
The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 2.96% to 2.92%, its lowest level since last May. Rates on a 30-year FHA-backed fixed-rate loan fell from 3.72% to 3.67%, the lowest level since April 2015.
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