Mortgage rates spike in latest data
Mortgage rates increase on weekly basis
Fixed mortgage rates increased week-over-week as the upward trend in rates seen for much of 2013 thus far continued, the Mortgage Bankers Association (MBA) said.
According to the MBA’s Weekly Mortgage Applications Survey for the week ending January 25, 2013, average interest rates for all fixed mortgage loan types surveyed showed increases.
Average rates for 30-year fixed mortgages (those with conforming loan balances of $417,500 or less) rose to 3.67 percent from 3.62 percent the previous week. This is the highest conforming 30-year fixed rate seen since September 2012, the MBA noted.
Jumbo (those with loan balances greater than $417,500) 30-year fixed mortgages spiked to an average of 3.95 percent from 3.85 percent one week earlier, while FHA-backed 30-year fixed mortgages saw an increase from 3.40 percent to 3.48 percent week over week.
Additionally, rates for 15-year fixed-rate mortgages rose to an average of 2.95 percent from 2.87 percent one week earlier.
Working against the trend, 5-year adjustable-rate mortgages (ARMs) actually saw a slight decrease in rates, decreasing to 2.60 percent from 2.61 percent the previous week.
Mortgage activity declines
According to the MBA, overall mortgage activity declined 8.1 percent on a weekly basis. A decrease in mortgage refinancing activity was the main culprit in the overall decline.
The MBA’s Refinance Index fell 10 percent week-over-week, while its Purchase Index dropped 2 percent in the same time frame.
Despite the big drop in refinancing applications, the share of overall mortgage activity associated with refinancing remains high. The refinance share of activity came in at 79 percent of all mortgage applications, down from 82 percent the previous week.