Dennis Norman
Interest Rates at Highest Level Since August 2009
The Mortgage Bankers Association (MBA) released its weekly mortgage applications survey for the week ending April 2, 2010. The report showed the MBA Purchase Index (a measure of the volume of loan applications related to a home purchase) increased 6.8 percent from the week before and are now at their highest level since October when buyers were rushing in to beat the original homebuyer tax credit deadline. The four-week moving average of home purchase mortgage applications is up a scant 0.2 percent.
The refinance share of mortgage applications dropped to 58.7 percent this week, it’s lowest level since August 29, 2009. The share of adjustable rate loans increased to 6.2 percent of all loans from 5.2 percent as a result of the higher interest rates no doubt.
“Mortgage rates jumped last week as the Federal Reserve completed their purchases of mortgage-backed securities,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Refinance application volume dropped as mortgage rates reached their highest level since August 2009. Purchase volume was essentially unchanged relative to the prior week going into the Easter weekend.”
Interest rates and fees for the week:
- 30 year fixed-rate mortgage interest rates shot up to 5.31 percent from 5.04 percent, with fees dropping to 0.64 percent from 1.07 percent on loans that are 80 percent of the value of the home.
- 15 year fixed rate mortgage interest rates increased to 4.54 percent from 4.34 percent, with fees decreasing to 0.92 percent from 0.98 percent on loans that are 80 percent of the value of the home.
- One-year ARM interest rates increased to 7.03 percent from 6.88 percent with fees decreasing slightly to 0.29 percent from 0.31 percent for loans that are 80 percent of the value of the home.
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