Housing
Mortgage Loan Rates Ticked Lower, Applications Rose 3% Last Week
Published:
Last Updated:
The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting an increase of 3% in the group’s seasonally adjusted composite index for the week ending August 4. During the week, mortgage loan rates fell on four of the five loan types that the MBA tracks.
On an unadjusted basis, the composite index increased by 3% week over week. The seasonally adjusted purchase index increased by 1% compared with the week ended July 28. The unadjusted purchase index increased by 0.3% for the week, and is now 7% higher year over year.
The MBA’s refinance index increased by 5% week over week, and the percentage of all new applications that were seeking refinancing rose from 45.5% to 46.7%.
Adjustable rate mortgage loans accounted for 6.8% of all applications, up 0.2 percentage points from the prior week.
Mortgage loan rates have ticked lower recently, but there has been very little change in interest rates over the past four weeks. According to Mortgage News Daily, the most prevalent rate being charged this week is 4% on a 30-year fixed-rate mortgage. Friday’s report on the Consumer Price Index is expected to provide a bit more direction on what the Federal Reserve might do to rates.
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage dropped from 4.17% to 4.14%. The rate for a jumbo 30-year fixed-rate mortgage fell from 4.11% to 4.07%. The average interest rate for a 15-year fixed-rate mortgage slipped from 3.45% to 3.41%.
The contract interest rate for a 5/1 adjustable rate mortgage loan inched up from 3.30% to 3.31%. Rates on a 30-year FHA-backed fixed rate loan slipped from 4.07% to 4.02%.
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.
Latest from 24/7
