(Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.91 percent a week ago and 4.12 percent a year ago.
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The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 0.1 percent in the week ended Aug.7.
The improvement in rates makes now an opportune time to buy, says Pava Leyrer, chief operating officer for Northern Mortgage Services in Grandville, Michigan.
The average rate on 30-year, fixed-rate mortgages with conforming loans-with balances up to $417,000-remained unchanged at 4.13%. The mortgages in this week’s survey had an average total of 0.24 discount and origination points.
There are now 195 mortgages at 95% LTV, a sharp increase on 42 two years ago in August 2013. The Jumbo 15 year fixed rate mortgages are being quoted at 3.750% and April of 4.008% today. Over the past 52 weeks, the 30-year fixed rate has averaged 4.03%. However, this year’s theme of overseas economic turbulence continues with the focus shifting east to China.
The ARM share of all mortgage applications also ticked up from the previous week to 6.8 percent and loan applications through the Federal Housing Administration jumped up from 13.7 to 13.8 percent.
According to the survey, the average 1-year Treasury-indexed ARM increased slightly while the 5-year Treasury-indexed hybrid ARM averaged the same when compared on a week-over-week basis. The Refinance Index increased 3 percent from the previous week to its highest level since May 2015. “Headed into the fall, we’ll likely see continued interest rate tension, with dollar appreciation weighing against possible Fed rate hikes leaving the rate outlook clouded”. The new home sales estimate is derived using mortgage application information from the BAS, as well as assumptions regarding market coverage and other factors.
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Reuters give figures of the previous week on refinance share with 51.3% and a 3.5% drop for loan applications for home purchases.
