Mortgage applications volume rose on the same week that global interest rates hiked. In its latest report, Mortgage Bankers Association‘s Weekly Mortgage Applications Survey reported an overall increase of 1.4 percent in total mortgage applications from the week prior.
The seasonally adjusted purchase index increased by 3 percent compared to the previous week but the refinance index decreased by 0.4 percent.
Refinance applications decreased from 45.6 percent last week to 44.9 percent this week. Adjustable rate mortgage applicationstotaled 7.2 percent.
Of the total applications, the 10.2 percent were FHA loans, slightly down from the 10.3 percent a week earlier. The VA took 10.3 percent of the total share, unchanged from the previous week, and the USDA loan applications slightly rose from 0.7 percent of the total applications share last week to 0.8 percent on the week.
Average contract interest rates
For 30-year FRMs with jumbo loan balances:increased to 4.10 percent from 4.09 percent; points up from 0.20 to 0.23 for those with 80 percent loan-to-value ratios.
For 30-year FRMs backed by the FHA:increased to 4.04 percent from 4.02 percent; points decreased from 0.41 to 0.33 for those with 80 percent loan-to-value ratios.
For 15-year FRMs:increased to 3.43 percent from 3.39 the preceding week; points decreased to 0.32 from 0.33 for those with 80 percent loan-to-value ratios.
For 5/1 adjustable-rate mortgages:slightly increased to 3.37 percent from 3.31 percent; points decreased from 0.25 to 0.22 for those with 80 percent loan-to-value ratios.
The math doesn’t add up
It doesn’t seem to make sense if you think about it. Mortgage rates skyrocketed, making the biggest five-day leap since the presidential elections. If rates rose, you’d not want to get a mortgage.
But people did. And it’s easy to see why this is so. With analysts previously warning of rising rates, borrowers and refinancers who were not able to take advantage of the previous low rates are jumping last minute into the opportunity before rates really march up.
If such is your case, locking in now could be the wise way to go. This, or risk your chances and hope the predictions are off again this time.