Average Mortgage Rates Move Higher

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According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from the week before. Increases were seen across all loan categories, including 30-year fixed-rate loans with jumbo and conforming loan balances, those backed by the Federal Housing Administration, and 15-year fixed-rate loans. Not surprisingly, rising mortgage rates caused a drop in refinance activity. In fact, refinance application demand fell 7 percent last week, following a 10 percent spike the week before. The drop caused the Market Composite Index – which measures both purchase and refinance application volume – to fall 4.1 percent. Still, purchase applications were relatively unchanged from the week before, decreasing just 0.3 percent. Though flat from one week earlier, purchase demand has now been more up than down over the past three weeks. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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