Mortgage rates moved even higher in the latest Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
The previous mortgage application report set the record high for the year, with the 30-year mortgage rate recording its highest weekly average since the beginning of 2016. Mortgage rates are going up for several possible reasons; market volatility after the recent election, rising 10-year treasury rates, and also another fed funds rise is expected in December.
Now for the week ending Nov. 25, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since July 2015, 4.23%, from 4.16%.
Similarly, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since July 2015, 4.18%, from 4.04%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since July 2015, 4%, from 3.90%, while the average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since October 2014, 3.48%, from 3.35%.
Posting the only decline, the average contract interest rate for 5/1 ARMs decreased to 3.23% from 3.24%.
Meanwhile, mortgage applications decreased 9.4% from one week earlier. However, this week’s results included an adjustment for the Thanksgiving holiday.
The Refinance Index decreased 16% from the previous week, as the seasonally adjusted Purchase Index decreased a mere 0.2% from one week earlier.
The refinance share of mortgage activity also plummeted, falling to its lowest level since June 2016. The refinance share decreased to 55.1% of total applications, from 58.2% the previous week.
Opposite of this, the adjustable-rate mortgage share of activity increased to 5.7% of total applications, its highest level since June 2016.
The average loan size for purchase applications reached a survey high at $312,400.
The FHA share of total applications decreased to 10.4% from 11.7% the week prior. The VA share of total applications decreased to 11.7% from 12.5 %the week prior. The USDA share of total applications remained frozen at 0.8% from the week prior.
