Mortgage rates are moving on up and don’t show signs of slowing anytime soon, as the 30-year fixed-rate mortgage with conforming loan balance once again reached a new record high.
According to the latest weekly mortgage applications survey from the Mortgage Bankers Association for the week ending Dec. 16, 2016, 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 May 2014, to 4.41%, from 4.28%.
And the other mortgage product rates followed suite.
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 April 2014, 4.36%, from 4.29%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since April 2014, 4.15%, from 4.02%.
The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since January 2014, 3.64%, from 3.52%, while the average contract interest rate for 5/1 ARMs increased to its highest level since September 2013, 3.45%, from 3.28%.
Despite the rise, mortgage applications still managed to squeak out a small rise, increasing 2.5% from one week earlier thanks to a slight uptick in refinance and purchase demand.
The Refinance Index increased 3% from the previous week, while the seasonally adjusted Purchase Index increased 3% from one week earlier.
The refinance share of mortgage activity increased to 57.9% of total applications from 57.2% the previous week. The adjustable-rate mortgage share of activity increased to 6.5% of total applications, its highest level since February 2016.
In addition, the average loan size for purchase applications reached its second-highest survey level at $312,000.
The FHA share of total applications decreased to 11.5% from 11.6% the week prior, while the USDA share of total applications decreased to 0.8% from 0.9% the week prior. Posting an increase, the VA share of total applications grew to 12% from 11.9% the week prior.