Mortgage rates mixed in latest data
30-year fixed rates rise
Mortgage rates showed mixed results week-over-week, according to the Mortgage Bankers Association (MBA).
The MBA’s Weekly Mortgage Applications Survey (data for the week ending June 22, 2012) revealed that interest rates fluctuated both directions, with some mortgage types seeing interest rate increases and others seeing decreases.
Average rates for 30-year fixed-rate mortgages rose slightly to 3.88 percent from 3.87 percent the previous week, while 15-year fixed-rate mortgages dropped slightly to an average rate of 3.24 percent from 3.25 percent one week earlier.
Rates for 5-year adjustable-rate mortgages (ARMs) increased to 2.81 percent from 2.75 percent the previous week.
Mortgage activity drops
Week-over-week, mortgage application activity decreased 7.1 percent, the MBA said. The decline was led by a drop in mortgage refinancing activity.
The MBA’s Refinance Index dropped 8 percent from the previous week, and the share of overall mortgage activity associated with refinance decreased to 79 percent of total applications, a drop from the 80 percent mark seen the previous week.
“Refinance volume fell last week due largely to a fall-off in refinance applications for government loans, which had more than doubled the prior week,” Michael Fratantoni, MBA’s Vice President of Research and Economics, said in a statement.
The fluctuations are directly related to recent changes in how the Federal Housing Administration (FHA) handles refinancing, Fratantoni said.
“The large swings in activity were due to the implementation of FHA’s new premiums on streamline refinances, and borrowers timing their applications to lower their premiums,” he said.