The average contract interest rate for 30-year, fixed-rate mortgages with conforming loan balances ($726,200 or less) experienced a four-basis-point drop to 6.73%, while the average contract interest rate for the same type of mortgage with a jumbo loan balance, i.e. over $726,000, increased by one basis point to 6.8%.
Points slid from 0.65 to 0.64 for 80% loan-to-value ratio (LTV) loans on 30-year fixed rates. The effective rate decreased from last week.
For 30-year, fixed-rate mortgages backed by the FHA, the average contract interest rate increased by four basis points to 6.74%.
A 15-year, fixed-rate mortgage saw an average contract interest rate of 6.26% last week, increasing by one basis point from the week prior. Points dropped from 1.05 to 0.71 for 80% LTV loans. The effective rate also decreased on a weekly basis.
“The 30-year fixed mortgage rate declined for the third consecutive week to 6.73%, while other mortgage rates saw mixed results,” Kan said. “Purchase applications increased, driven by 2% gain in conventional purchase applications and a 3% increase in FHA purchase activity.”
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