Mortgage Activity Slows As Rates Rise
May 29, 2013 by UPI - United Press International, Inc.
WASHINGTON (UPI) — U.S. mortgage activity fell for the second consecutive week, as interest rates continued to climb, the Mortgage Bankers Association said Wednesday.
The association said mortgage activity fell 8.8 percent in the week while refinancing activity dropped 12 percent in the week ending Friday.
Interest rates for 30-year, fixed-rate conforming mortgages increased from 3.78 percent to 3.9 percent during the week, the highest rate in 12 months.
Points for 30-year conforming loans were unchanged at 0.39.
The average interest rate for 30-year contracts on jumbo loans — larger than $417,500 — rose from 3.93 percent to 4.07 percent, the highest rate in nine months. Points for 30-year jumbo loans fell from 0.36 to 0.27.
Interest rates for 15-year, fixed-rate mortgages rose from 2.96 percent to 3.1 percent, also hitting the highest level in nine months. Points for 15-year, fixed-rate contracts fell from 0.32 to 0.3.
The average rate for 30-year loans backed by the Federal Housing Administration rose from 3.53 percent to 3.62 percent, a nine-month high, with points rising from 0.13 to 0.27.
The average rate for short-term, adjustable-rate mortgages held steady at 2.6 percent. Points for short-term adjustable-rate loans rose to 0.24 from 0.23, the MBA said.