Housing
Mortgage Loan Rates Move Higher for Second Consecutive Week
Published:
Last Updated:
The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 3.2% in the group’s seasonally adjusted composite index for the week ending January 27. During the week, mortgage loan rates increased on three types of fixed-rate loans and decreased on adjustables and FHA loans.
On an unadjusted basis, the composite index increased by 11% week over week, largely the result of the prior week’s Martin Luther King Jr. holiday. The seasonally adjusted purchase index decreased by 6% compared with the week ended January 20. The unadjusted purchase index increased by 12% for the week and is now 2% higher year over year.
The MBA’s refinance index decreased by 2% week over week, and the percentage of all new applications that were seeking refinancing slipped from 50% to 49.4%.
Adjustable rate mortgage loans accounted for 6.4% of all applications, up from 5.7% the prior week.
The first order signed by President Trump following his inauguration suspended a pending rate cut to FHA mortgage loan premiums. The rate cut was announced during the last days of the Obama administration and would have cut the insurance premium from 0.85% to 0.60%. On a $100,000 mortgage that would amount to around $20 a month. Not much, obviously, but maybe enough to push first-time buyers into a debt-to-income ratio that disqualifies them from receiving a mortgage.
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage increased from 4.35% to 4.39%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.28% to 4.32%. The average interest rate for a 15-year fixed-rate mortgage increased from 3.57% to 3.61%.
The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.41% to 3.33%. Rates on a 30-year FHA-backed fixed-rate loan fell from 4.19% to 4.17%.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? 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 guide you through the financial decisions you’re making. 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.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
