Mortgage

MBA: 30-year mortgage rate moves higher, at highest level since July 2015

Mortgage applications drop

Mortgage rates moved even higher in the latest Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

The previous mortgage application report set the record high for the year, with the 30-year mortgage rate recording its highest weekly average since the beginning of 2016. Mortgage rates are going up for several possible reasons; market volatility after the recent election, rising 10-year treasury rates, and also another fed funds rise is expected in December. 

Now for the week ending Nov. 25, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since July 2015, 4.23%, from 4.16%.

Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since July 2015, 4.18%, from 4.04%.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since July 2015, 4%, from 3.90%, while the average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since October 2014, 3.48%, from 3.35%.

Posting the only decline, the average contract interest rate for 5/1 ARMs decreased to 3.23% from 3.24%.

Meanwhile, mortgage applications decreased 9.4% from one week earlier. However, this week’s results included an adjustment for the Thanksgiving holiday.

The Refinance Index decreased 16% from the previous week, as the seasonally adjusted Purchase Index decreased a mere 0.2% from one week earlier.

The refinance share of mortgage activity also plummeted, falling to its lowest level since June 2016. The refinance share decreased to 55.1% of total applications, from 58.2% the previous week.

Opposite of this, the adjustable-rate mortgage share of activity increased to 5.7% of total applications, its highest level since June 2016.

The average loan size for purchase applications reached a survey high at $312,400.

The FHA share of total applications decreased to 10.4% from 11.7% the week prior. The VA share of total applications decreased to 11.7% from 12.5 %the week prior. The USDA share of total applications remained frozen at 0.8% from the week prior.

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