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 February 23. Mortgage loan rates rose again last week on three of five loan types that the MBA tracks. All three loan types posted multiyear highs last week.
On an unadjusted basis, the composite index decreased by 6% week over week. The seasonally adjusted purchase index rose 6% compared with the week ended February 16. The unadjusted purchase index decreased by 1% for the week and is now 3% higher year over year.
The MBA’s refinance index decreased by 1% week over week, and the percentage of all new applications that were seeking refinancing fell from 44.4% to 41.8%.
Adjustable rate mortgage loans accounted for 6.7% of all applications, up 0.3 percentage points from the prior week.
Mortgage loan rates that moved down last week got a boost yesterday following remarks by Federal Reserve Chair Jerome Powell. In his statement, Powell appeared to some Fed watchers to have added another rate hike to the calendar for this year. Quoted mortgage loan rates reached 4.58% on a 30-year fixed-rate conforming loan according to Mortgage News Daily, a 52-week high.
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage remained unchanged week over week at 4.64%. The rate for a jumbo 30-year fixed-rate mortgage decreased from 4.62% to 4.57%. The average interest rate for a 15-year fixed-rate mortgage rose from 4.02% to 4.07%, its highest level since April 2011.
The contract interest rate for a 5/1 adjustable rate mortgage loan increased from 3.72% to 3.85%, also a high since April 2011. Rates on a 30-year FHA-backed fixed-rate loan increased from 4.58% to 4.68%, also its highest level since April 2011.
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. 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. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
