Mortgage rates fluctuate on weekly basis
Fixed mortgage rates mostly rise
Fixed mortgage rates saw upward movement this week as mortgage activity declined, the Mortgage Bankers Association (MBA) said in its weekly mortgage report.
According to the MBA’s data for the week ending October 26, 2012, mortgage application activity dropped week-over-week as fixed mortgage rates increased.
Average rates for 30-year fixed mortgages – those with conforming loan balances of $417,500 or less – rose to 3.65 percent from 3.63 percent the previous week.
This is the highest 30-year conforming fixed rate since mid-September, the MBA noted.
Jumbo – those with loan balances greater than $417,500 – 30-year fixed mortgage rates rose from 3.85 percent to 3.94 percent week-over-week, while FHA-back 30-year fixed mortgages stayed even at 3.41 percent.
The average interest rate for 30-year fixed jumbo mortgages is also the highest since mid-September, the MBA said.
Shorter-term 15-year fixed mortgages dropped to an average of 2.95 percent from 2.96 percent the previous week, while 5-year adjustable-rate mortgages (ARMs) decreased to a 2.66 percent average from 2.72 percent one week earlier.
Refinance activity drops
Mortgage activity overall declined 4.8 percent on a weekly basis, led by a drop in mortgage refinancing applications.
The MBA’s Refinance Index fell 6 percent week-over-week and is at its lowest level since the end of August. Additionally, the share of overall mortgage activity associated with refinancing fell from 81 percent of total applications to 80 percent.