Housing

Mortgage Loan Rates Stayed Low Last Week, Applications Rose

Thinkstock

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting an increase of 2.7% in the group’s seasonally adjusted composite index for the week ending April 21. During the week, mortgage loan rates either remained unchanged or decreased.

On an unadjusted basis, the composite index increased by 3% week over week. The seasonally adjusted purchase index decreased by 1% compared with the week ended April 14. The unadjusted purchase index increased by 1% for the week and is now 0.4% higher year over year.

The MBA’s refinance index increased by 7% week over week and the percentage of all new applications that were seeking refinancing rose from 42.4% to 44%.

Adjustable rate mortgage loans accounted for 8.7% of all applications, up 0.3 percentage points compared with the prior week.

Mortgage rates have turned higher since Sunday’s election in France. Prior to the election, investors had been seeking safety in the bond market, driving yields (and mortgage rates) down.

The election results increased investors’ appetite for risk, bond-buying has slowed and mortgage rates have begun to rise. Still, Mortgage News Daily reports that Tuesday’s most common rates on 30-year conventional loans were between 4.000% and 4.125%.

According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.22% to 4.20%, its lowest level since last November. The rate for a jumbo 30-year fixed-rate mortgage remained unchanged at 4.15%. The average interest rate for a 15-year fixed-rate mortgage dropped from 3.50% to 3.46%, also its lowest level since November.

The contract interest rate for a 5/1 adjustable-rate mortgage loan decreased from 3.27% to 3.22%. Rates on a 30-year FHA-backed fixed-rate loan fell from 4.09% to 4.03%.

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.