Mortgage Applications Fall as Interest Rates Increase

Mortgage applications fall as interest rates increase.

Mortgage interest rates rose to their highest level of the year and that caused the total number of mortgage applications to fall.

The (MBA) or Mortgage Bankers Association said the seasonally adjusted purchase index also decreased one percent from last week. They stated that the unadjusted purchase index was left unchanged last week but that it was 15 percent lower for the same week last year.

One of the more surprising stats from last week was that the refinance share of total mortgage activity also dropped for the 6th straight week. The refinance percentage was sitting at 57% and now is at 56.5%.

Refinance at
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The organization also reported that the average contract interest rate fell from 4.52% to 4.5% on a 30 year fixed mortgage. The average interest rate for a 30 year fixed backed by FHA dropped from 4.18% to 4.13%. The average interest rate for jumbo loans on a 30 year fixed decreased from 4.41% to 4.39%.

The average interest rate for 15 year fixed rate mortgages dropped from 3.53% to 3.52% from the same period last week. The average 5/1 arm contract interest rate dropped from 3.18% to 3.09% for the same time last week.

All of the mortgage interest rate percentages are based on a 80% LTV (loan to value) loan.

The information that is collected covers over 75 percent of all US residential mortgage applications according to the (MBA) or Mortgage Bankers Association.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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