Rates generally rose during the past week, but so did new loan applications. The increase was driven by a jump in refinance applications.
The average 30-year fixed-rate mortgage was 5.14% in Freddie Mac’s Primary Mortgage Market Survey for the week ended Aug. 27, rising 0.02% from last week but 1.26% below a year ago. Freddie’s regulator, the Federal Housing Finance Agency, reported that the average conforming 30-year was 5.31% in July, rising 0.19% from June. FHFA’s figures reflected loan closings from July 37 through July 31.
The 10-year Treasury yield was 3.440% this morning, lower than 3.465% reported during trading a week ago and suggesting mortgage rates might ease.
Also up 2 basis points from the prior week to 4.58% was the average 15-year fixed-rate mortgage, Freddie said. FHFA reported that the 15-year average rose 9 BPS from June to 4.89%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage jumped 10 BPS in Freddie’s latest survey from a week earlier to 4.67%.
The one-year Treasury indexed ARM diverted from the pack — unchanged from seven days earlier at 4.69%. Up 2 BPS from Wednesday of last week, the one-year Treasury bill yielded 0.45% yesterday, according to U.S. Department of the Treasury data.
A widely used index on subprime mortgages, the six-month London Interbank Offered Rate, was 0.79% yesterday, according to Bankrate.com, lower than 0.83% in the prior week’s report.
Borrowers chose ARMs in 6.5% of loan applications tracked in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ended Aug. 21, the same as the previous week.
MBA said refinance applications rose 13 percent, pushing the refinance share to 57% from 53% a week previous. The stronger refinance activity also pushed MBA’s Market Composite Index up 8% on a seasonally adjusted basis.
Purchase activity was up 1% from MBA’s previous survey.
