Mortgage rates, mortgage activity both jump
Big spike in activity seen to begin 2013
Mortgage rates increased week-over-week and mortgage activity spiked alongside the rate increases, the Mortgage Bankers Association (MBA) said in its first weekly mortgage report of 2013 that incorporates 2013 data.
According to the MBA’s Weekly Mortgage Applications Survey for the week ending January 4, 2013, overall mortgage activity (measured by mortgage applications) spiked 49 percent week-over-week on an unadjusted basis. Adjusted results – accounting for the New Year’s Day holiday show an 11.7 percent increase from the previous week.
Both the Refinance Index and the Purchase Index rose in this latest data – 12 percent and 10 percent, respectively – but if you reach back two weeks the results are less impressive. Compared to two weeks earlier, the MBA’s Refinance Index is up about 1 percent and its Purchase Index is down 2 percent.
Mortgage rates rise across the board
Average rates for 30-year fixed mortgages (those with conforming loan balances of $417,500 or less) rose from 3.52 percent to 3.61 percent week over week.
Jumbo (those with jumbo loan balances greater than $417,500) 30-year fixed mortgages rose to an average interest rate of 3.78 percent from 3.75 percent, while FHA-backed 30-year fixed mortgages rose slightly to an average of 3.35 percent from 3.34 percent the previous week.
Shorter-term 15-year fixed mortgages increased from 2.86 percent to 2.88 percent, while 5-year adjustable-rate mortgages (ARMs) showed a slight decrease from 2.65 percent to 2.64 percent.
30-year fixed rates on the rise
This is the third straight MBA weekly survey that recorded an increase in average contract interest rates for 30-year fixed-rate mortgages (conforming loan balances).
For the week ending December 14, 2012, 30-year rates increased to 3.50 percent, and the average rate then ticked up to 3.51 percent and 3.52 percent in the following weeks.
This latest jump from 3.52 percent to 3.61 percent leaves the 30-year fixed mortgage at its highest average rate since early November 2012.
See also: 2012 mortgage rates archive