Mortgage Rates Rise After Weeks Of Decline

Blog Leave a Comment

After declining for four-straight weeks, average mortgage rates rose last week, according to the Mortgage Bankers Association’s Weekly Applications Survey. The results show rates increased on 30-year fixed-rate mortgages with both conforming and jumbo balances as well as loans backed by the Federal Housing Administration. Interest rates on 15-year fixed-rate loans were unchanged from the week before. The rate increase led to a drop in mortgage application volume, with demand for both refinance and purchase loans falling from the week before. In fact, the Market Composite Index – which measures total loan application demand – declined 6.6 percent. Mark Fratantoni, MBA’s chief economist, said some of the recent volatility in demand has been due to up-and-down refinance activity on jumbo loans. Refinance activity surged when rates fell to a 16-month low but slowed significantly once they began to climb again. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Arrow Up 3