The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 3.7% in the group’s seasonally adjusted composite index for the week ending February 8. Mortgage interest rates dropped on all five types of loans the MBA tracks.
On an unadjusted basis, the MBA’s composite index dipped by 4% in the past week. The seasonally adjusted purchase index decreased by 6% compared with the week ended February 1. The unadjusted purchase index fell by 6% for the week and was 5% lower year over year.
Mortgage loan rates for a top-tier 30-year fixed-rate loan slipped from 4.53% to 4.44% last week, according to Mortgage News Daily. As of Tuesday night, top-tier borrowers were paying 4.45% for that loan. The yield on a 10-year U.S. Treasury note ticked down in the last week from 2.70% to 2.69% as of last night’s close. A year ago the 10-year note yielded 2.86%.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting, commented:
Application activity fell last week – even with rates decreasing – as renewed uncertainty about the domestic and global economy likely held potential homebuyers off the market. Despite the recent decline in applications, we still expect that the continued strength of the job market and lower rates will support more purchase activity in the coming months.
The MBA’s refinance index decreased by 0.1% week over week, and the percentage of all new applications that were seeking refinancing rose from 41.6% to 43.2%.
Adjustable rate mortgage loans accounted for 7.5% of all applications, down from 7.8% in the prior week.
According to the MBA, last week’s average mortgage loan rate for a conforming 30-year fixed-rate mortgage fell from 4.69% to 4.65%. The rate for a jumbo 30-year fixed-rate mortgage slipped from 4.50% to 4.48%. The average interest rate for a 15-year fixed-rate mortgage decreased from 4.11% to 4.04%.
The contract interest rate for a 5/1 adjustable rate mortgage loan slipped from 4.04% to 3.97%. Rates on a 30-year FHA-backed fixed-rate loan fell from 4.70% to 4.61%.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
