Mortgage interest rates barely moved at all last week, but demand from homebuyers as well as those looking to refinance a current home loan increased.
Total mortgage application volume rose 12.5% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. An additional adjustment was made for the Memorial Day holiday. While the weekly move may seem large, the volume is still quite low historically.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, increased to 6.93% from 6.92%, with points decreasing to 0.64 from 0.66, including the origination fee, for loans with a 20% down payment. The rate is now just 9 basis points lower than it was the same week one year ago.
The average rates for 15-year fixed loans as well as FHA loans, however, decreased slightly.
“Coming out of the Memorial Day holiday, mortgage applications increased to the highest level in over a month,” said Joel Kan, MBA’s vice president and deputy chief economist in a release. “Treasury rates saw some movement during the week, which resulted in additional opportunities for borrowers.”
