Housing
Mortgage Loan Rates Tick Higher as Applications Continue to Slip
Published:
Last Updated:
The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 0.4% in the group’s seasonally adjusted composite index for the week ending September 29. During the week, mortgage loan rates rose on four of five loan types that the MBA tracks.
On an unadjusted basis, the composite index decreased by 1% week over week. The seasonally adjusted purchase index increased by 1% compared with the week ended September 22. The unadjusted purchase index increased by 1% for the week and is now 5% higher year over year.
The MBA’s refinance index decreased by 4% week over week and the percentage of all new applications that were seeking refinancing dipped from 50.8% to 50.1%.
Adjustable rate mortgage loans accounted for 6% of all applications, down 0.5 percentage points from the prior week.
Mortgage rates have remained near their two-month highs over the past week, but that still puts them in a range of 3.875% to 4.000% for top-tier borrowers according to Mortgage News Daily. Most changes in the rate borrowers pay have come in the closing costs associated with getting a mortgage loan.
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage rose from 4.11% to 4.12%. The rate for a jumbo 30-year fixed-rate mortgage rose from 4.06% to 4.09%. The average interest rate for a 15-year fixed-rate mortgage rose from 3.38% to 3.42%.
The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.38% to 3.30%. Rates on a 30-year FHA-backed fixed-rate loan ticked up from 3.98% to 3.99%.
24/7 Wall St.Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
