By Francys Vallecillo
Wednesday, July 3, 2013 — As mortgage rates in the U.S. continued to rise and hit a two-year high, mortgage applications submitted decreased from a week earlier.
The average interest rate for a 30-year fixed mortgage with conforming balances of $417,500 or less increased to 4.58 percent, the highest rate since July 2011, from 4.46 the previous week, according to the latest data from the Mortgage Bankers Association’s weekly mortgage applications survey.
Mortgage rates have been steadily increasing and may now be affecting the number of applications submitted. The volume of mortgage applications decreased 11.7 percent from the previous week, according to MBA’s market composite index. Similarly, the association’s refinance index decreased 16 percent from the prior week.
Today Freddie Mac announced that rates had slipped back to 4.29 percent, down from 4.46 percent. But many experts expect the rates to continue to climb.
“At these rates, many fewer homeowners have an incentive to refinance,” MBA’s vice president of research and economics Mike Fratantoni said in a release. “With this decline in volume, the refinance share dropped to its lowest level in more than two years.”
Out of all applications, refinances made up 64 percent of mortgage activity, the lowest level since May 2011, compared to 67 percent the previous week.
Rates for 30-year fixed mortgages with jumbo loan balances, 30-year fixed-rate mortgages backed by the FHA and 15-year fixed-mortgages all increased from the previous week to their highest since late 2011.
By Francys Vallecillo | July 3, 2013 9:43 AM ET
As mortgage rates in the U.S. continued to rise and hit a two-year high, mortgage applications submitted decreased from a week earlier.
The average interest rate for a 30-year fixed mortgage with conforming balances of $417,500 or less increased to 4.58 percent, the highest rate since July 2011, from 4.46 the previous week, according to the latest data from the Mortgage Bankers Association's weekly mortgage applications survey.
Mortgage rates have been steadily increasing and may now be affecting the number of applications submitted. The volume of mortgage applications decreased 11.7 percent from the previous week, according to MBA's market composite index. Similarly, the association's refinance index decreased 16 percent from the prior week.
Today
Freddie Mac announced that rates had slipped back to 4.29 percent, down
from 4.46 percent. But many experts expect the rates to continue to
climb.
"At these rates, many fewer homeowners have an incentive to refinance," MBA's vice president of research and economics Mike Fratantoni said in a release. "With this decline in volume, the refinance share dropped to its lowest level in more than two years."
Out of all applications, refinances made up 64 percent of mortgage activity, the lowest level since May 2011, compared to 67 percent the previous week.
Rates for 30-year fixed mortgages with jumbo loan balances, 30-year fixed-rate mortgages backed by the FHA and 15-year fixed-mortgages all increased from the previous week to their highest since late 2011.
"At these rates, many fewer homeowners have an incentive to refinance," MBA's vice president of research and economics Mike Fratantoni said in a release. "With this decline in volume, the refinance share dropped to its lowest level in more than two years."
Out of all applications, refinances made up 64 percent of mortgage activity, the lowest level since May 2011, compared to 67 percent the previous week.
Rates for 30-year fixed mortgages with jumbo loan balances, 30-year fixed-rate mortgages backed by the FHA and 15-year fixed-mortgages all increased from the previous week to their highest since late 2011.
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