U.S. mortgage applications up 0.9 percent on rising interest rates

Nathan Andrada – Fourth Estate Cooperative Contributor

Washington, DC, United States (4E) – The average number of mortgage applications in the U.S. climbed 0.9 percent last week amid declining interest rates, according to the report by Mortgage Bankers Association (MBA) released Wednesday.

Purchase applications declined 3 percent unadjusted from the earlier week and down 12 percent from a year-ago period, according to the MBA. The share of refinance in mortgage activity surged to 52 percent of total applications from the prior week’s 50 percent.

Rates for 30-year, fixed-rate mortgages with conforming loans fell to 4.33 percent, which is the lowest since November last year — versus 4.39 percent in the previous week. The average rate for 30-year, fixed-rate mortgages with jumbo-loan balances slid to 4.24 percent — the lowest rate since May 2013 – compared with the previous week’s 4.29 percent.

Rates for 30-year, fixed-rate mortgages backed by the Federal Housing Administration were down to 4.06 percent — the latest rate is the lowest since October — from 4.09 percent the previous week.

Rates for 15-year, fixed-rate mortgages declined to 3.43 percent, the lowest rate since October 2013, from the prior week’s 3.48 percent. The average rate for 5/1 ARM average dropped to 3.14 percent from 3.17 percent in the previous week.

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