Fixed mortgage rates rise slightly

After weeks of declines, mortgage rates ticked upward this week, according to the latest data from the Mortgage Bankers Association (MBA).

For much of the past two months, mortgage rates have been on a downward trend, including last week when 30-year fixed mortgage rates fell to the lowest levels since November 2010.

In the latest MBA Weekly Mortgage Applications Survey (for the week ending June 17, 2011), however, average mortgage rates for both 30-year and 15-year fixed-rate loans increased.

According to the MBA, the average contract interest rate for 30-year fixed mortgages rose to 4.57 percent, up from 4.51 percent last week. And the average contract interest rate for 15-year fixed mortgages increased to 3.70 percent from 3.67 percent the previous week.

For the week ending June 17, total mortgage applications fell 5.9 percent from one week prior, the MBA said. In addition, fewer homeowners chose to refinance current mortgages, as the refinance share of overall mortgage activity declined to 69.2 percent of total applications. Last week, the refinance share of activity totaled 70.0 percent of overall applications.

Despite higher average fixed rates, fewer borrowers opted to apply for adjustable-rate mortgages (ARMs), the MBA report noted. In this latest data, the ARM share of activity fell to 5.9 percent of total applications, down from 6.1 percent of total applications the previous week.

Posted in: Mortgage, Mortgage Rates, Refinance, Refinance Rates

Mortgage News: This article was published on 6-22-2011 at 11:20 am.

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