Mortgage rates continue uphill climb
All mortgage types see rate increases
Mortgage rates continued the uphill climb that has been seen for much of 2013, according to a recent report from the Mortgage Bankers Association (MBA).
According to the MBA’s Weekly Mortgage Applications Survey for the week ending February 1, 2013, average rates for all mortgage types surveyed increased week-over-week.
Average rates for 30-year fixed mortgages rose to 3.73 percent from 3.67 percent the previous week. This is the seventh time in eight weeks that interest rates for this type of mortgage has increased.
The aforementioned 3.73 percent average refers to 30-year fixed mortgages with conforming loan balances of $417,500 or less. Rates for jumbo 30-year fixed mortgages (those with loan balances greater than $417,500) also increased week-over-week – from 3.95 percent to 3.96 percent.
FHA-backed 30-year fixed mortgages rose to an average rate of 3.53 percent from 3.48 percent the previous week.
In addition, 15-year fixed mortgages increased on a weekly basis from 2.95 percent to 3.00 percent, while 5-year adjustable-rate mortgages (ARMs) spiked from 2.60 percent to 2.72 percent week over week.
Mortgage activity increases
Overall mortgage activity – measured by mortgage application volume – rose 3.4 percent on a weekly basis, the MBA said.
The MBA’s Purchase Index rose 2 percent week-over-week, while its Refinance Index rose 4 percent on a weekly basis.
The percentage of all mortgage activity associated with refinancing dropped to 78 percent of all applications, down from 79 percent one week earlier. The 78 percent mark is the lowest refinance share since July 2012.