Mortgage Loan Rates Remain Low as Mortgage Applications Slip

Submitted by Anonymous (not verified) on Wed, 11/26/2014 - 19:34

The Mortgage Bankers Association (MBA) released its weekly report on mortgage applications Wednesday morning, noting a decrease of 4.3% in the group’s seasonally adjusted composite index for the week ending November 21st following a rise of 4.9% for the previous week. Mortgage loan rates fell on three loan types, rose on one, and remained unchanged on a fifth.

On an unadjusted basis, the composite index increased by 5% week-over-week. The seasonally adjusted purchase index decreased 5% compared to the week ended November 14th. The unadjusted purchase index rose by 1% for the week, and remains 10% lower year-over-year.

Adjustable rate mortgage loans accounted for 7% of all applications, up from 6.9% in the prior week.

The MBA’s refinance index increased by 4% after rising by 1% in the previous week. The share of refinancings rose from 61% to 63%.

The average mortgage loan rate for a conforming 30-year fixed-rate mortgage decreased from 4.18% to 4.15%. The rate for a jumbo 30-year fixed-rate mortgage remained unchanged at 4.10%. The average interest rate for a 15-year fixed-rate mortgage decreased from 3.38% to 3.35%.

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The contract interest rate for a 5/1 adjustable rate mortgage loan decreased from 3.09% to 3.06%. Rates on a 30-year FHA-backed fixed rate loan rose from 3.85% to 3.90%.

The interest rate on 30-year fixed loans dropped for the second straight week and rates for a 15-year fixed loan also dropped after remaining steady for the previous two weeks. The percentage of refinancings remains low even though the refinance index ticked up last week.

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Article references
finance.yahoo.com