“Mortgage rate movements were mixed last week as Treasury yields moved slightly higher following last week’s FOMC meeting. The 30-year fixed rate was mostly unchanged at 6.31% and remained close to the lowest level in over a year,” said Joel Kan, MBA’s vice president and deputy chief economist. “Despite a decline last week, refinance applications are still significantly higher than a year ago. The average loan size for refinance applications was at its highest level in six weeks, as borrowers with larger loans continued to seek ways to lower their monthly payments. Purchase applications declined slightly from a week ago, however, there was a slight increase in FHA purchase applications as prospective homebuyers continue to seek loan options to help manage challenging affordability conditions.”
The refinance share of mortgage activity decreased to 57.0% of total applications from 57.1% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.7% of total applications. The Federal Housing Administration (FHA) share of total applications also decreased to 18.5% from 20.5% the week prior.
The U.S. Department of Veterans Affairs (VA) share of total applications, meanwhile, increased to 14.9% from 13.4% the week prior. The U.S. Department of Agriculture (USDA) share of total applications also saw an increase, inching up to 0.3% from 0.2% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 6.31% from 6.30% and rates for 30-year fixed-rate mortgages with jumbo loan balances increased to 6.43% from 6.38%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 6.13% from 6.12% while average rates for 15-year fixed-rate mortgages decreased to 5.65% from 5.67%. The average contract interest rate for 5/1 ARMs decreased to 5.56% from 5.66%.
