Mortgage rates continue to climb uphill
Interest rates on the rise
Mortgages rates have reversed the downward trend seen much of 2013 and headed uphill in recent weeks. This week, mortgage rates increased for all mortgage types, the Mortgage Bankers Association (MBA) said.
According the MBA’s Weekly Mortgage Applications Survey for the week ending May 10, 2013, both fixed-rate mortgages and adjustable-rate mortgages (ARMs) saw week-over-week increases in average interest rates.
Average rates for 30-year fixed mortgages rose from 3.59 percent to 3.67 percent on a weekly basis. These rates refer to 30-year fixed mortgages with conforming loan balances of $417,500 or less, but other types of 30-year fixed mortgages saw similar changes.
Jumbo (loan balances greater than $417,500) 30-year fixed mortgages increased to an average rate of 3.87 percent from 3.79 percent the previous week, while FHA-backed 30-year fixed mortgages rose to an average of 3.43 percent – up from 3.35 percent one week earlier.
Shorter-term 15-year fixed mortgages saw an increase to 2.88 percent from 2.81 percent the previous week, and 5-year ARMs increased slightly to an average rate of 2.55 percent from 2.53 percent the prior week.
Mortgage activity declines
Overall, mortgage activity – measured by application volume – declined 7.3 percent week-over-week, the MBA said.
The MBA’s Refinance Index fell 8 percent weekly, while its Purchase Index fell 4 percent week over week.
Refinancing activity is still dominating the mortgage marketplace, making up 76 percent of total mortgage applications in this latest data – the same as the previous week.