Average Mortgage Rates Up Over Week Before

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. Rates increased to levels last seen in June, though they remain low by historical standards. Michael Fratantoni, MBA’s chief economist, told CNBC the jump was spurred, in part, by speculation that the Federal Reserve may raise interest rates this week. “Mortgage rates increased to their highest level since June last week as comments by some Fed officials made it appear that the Federal Reserve is closer to raising rates,” Fratantoni said. “The average refi loan size fell to its lowest level in three months as more jumbo borrowers left the market.” But while refinance and purchase application demand did fall from one week earlier, they both remain up from last year, with refinance activity 26 percent higher than at the same time one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Comments are closed.