Home Loan Interest Rates are Inching Up!

The 30-year fixed-rate mortgage is getting closer to moving over 4 percent, as mortgage rates climb for the second week in a row. Freddie Mac reports that fixed-rate mortgages are rising in anticipation of a possible rate increase by the Federal Reserve and a recent strong jobs report.  Please provide comments about this and your local area!

Freddie Mac reports the following national averages with for the week ending Nov. 12:

  • 30-year fixed-rate mortgages: averaged 3.98 percent, with an average 0.6 point, rising from last week’s 3.87 percent average. Last year at this time, 30-year rates averaged 4.01 percent.
  • 15-year fixed-rate mortgages: averaged 3.20 percent, with an average 0.6 point, increasing from last week’s 3.09 percent average. A year ago, 15-year rates averaged 3.20 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.4 point, climbing from last week’s 2.96 percent average. A year ago, 5-year ARMs averaged 3.02 percent.
  • 1-year ARMs: averaged 2.65 percent, with an average 0.2 point, increasing from 2.62 percent last week. A year ago, 1-year ARMs averaged 2.43 percent.

Source: Freddie Mac

Mortgage Rates Sink Lower This Week

Averages on fixed-rate mortgages dropped lower this week, continuing to provide a benefit to home buyers and refinancers, Freddie Mac reports.

Freddie Mac reports the following national averages for the week ending Oct. 22:

  • 30-year fixed-rate mortgages: averaged 3.79 percent, with an average 0.6 point, dropping from last week’s 3.82 percent average. Last year at this time, 30-year rates averaged 3.92 percent.
  • 15-year fixed-rate mortgages: averaged 2.98 percent, with an average 0.5 point, falling from a 3.03 percent average. A year ago, 15-year rates averaged 3.08 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.89 percent, with an average 0.4 point, rising from last week’s 2.88 percent average. A year ago, 5-year ARMs averaged 2.91 percent.

Source: Freddie Mac

Higher Loan Interest Rates Stifle Mortgage Demand

The 30-year fixed-rate mortgage rose above 4 percent last week, prompting home owners to stall in refinancing their loans, which sent overall mortgage applications down, the Mortgage Bankers Association reports.

An index reflecting demand for mortgage applications – both for refinancing and home purchases – dropped 1.6 percent on a seasonally adjusted basis for the week ending May 22, MBA reports. Still, volume is higher than a year ago, but demand has dropped 10 percent in the last four weeks.

“Mortgage rates continued to climb last week due to stronger home sales, rising inflation, and further signals that the Fed is likely to raise their target rate this year,” says Michael Fratantoni, with MBA. “Refinance volume dropped to its lowest level since January.”

Source: “Mortgage Applications Drop 1.6% as Refinancing Stalls,” CNBC (May 27, 2015)

Home Loan Demand Dips As ‘Interest Rates Rise’

A sharp rise in mortgage rates dampened mortgage application volume last week, the Mortgage Bankers Association reports. Total mortgage application volume for both refinancings and home purchases fell 3.5 percent on a seasonally adjusted basis for the week ending May 8. Still, volume is 14 percent higher than a year earlier.

Broken out, applications for refinancings attributed to most of the drop in loan demand last week. Refinancing applications fell 6 percent week-over-week and have fallen 16 percent in the past four weeks alone, MBA reports. Applications for home purchases, which are viewed as a leading indicator of future home sales, mostly held steady last week, down just 0.2 percent from the previous week. Applications for home purchases are 12 percent higher than a year earlier.

MBA reports that the 30-year fixed-rate mortgage rose to 4 percent last week; it had averaged 3.93 percent the week prior.

Source: “Weekly Mortgage Applications Fall 3.5% as Rates Rise,” CNBC (May 13, 2015)

As Interest Rates Rise, Mortgage Applications Drop!

Loan demand dropped last week as interest rates rose for the fourth straight week, the Mortgage Bankers Association reports. 

The index measuring mortgage application activity, which includes applications for refinancing and home purchases, fell 6.4 percent for the week ending Feb. 8.

Separated out, refinancing applications during the week dropped 5.5 percent while applications for home purchases, viewed as a leading indicator of home sales, fell 9.5 percent. 

The 30-year fixed-rate mortgage averaged 3.75 percent last week, up from 3.73 percent the previous week. The 30-year rate is at its highest level since September 2012, according to the MBA. 

Source: “U.S. Mortgage Applications Slumped Last Week as Rates Rose,” Reuters (2/13/13)