Home Loan Demand Declines as 30 Year Mortgage Rates Hit 6 Month High
mortgage rates moved to 6 month highs. Average mortgage rates increased this past week due to stronger than expected job growth for February, which caused interest rates to move higher. The average contract rate for 30 year conforming loans was 3.81 percent with 0.39 points, the highest average rate since August 2012. The average rate was up from the prior week's average of 3.70 percent with 0.39 points.
The Mortgage Bankers Association's Market Composite Index, which measures mortgage loan application volume, decreased 4.7 percent on a seasonally adjusted basis from one week earlier. The MBA's Refinance Index, which measures loan demand for homeowners refinancing loans, decreased 5 percent from the previous week. The MBA's Purchase Index, a measure of loan demand for home purchases, decreased 3 percent from one week earlier.
Average mortgage rates today are higher but rates are still just above all-time record lows. You can still find lenders quoting 30 year mortgage rates below the record lows. Currently, in our rate database we have lenders quoting 30 year refinance rates at 3.25 percent with points and at 3.50 percent without points, depending on your credit score and the state in which you live.
Current mortgage rates on 30 year jumbo mortgage loans are also higher this week. In the MBA survey, the average contract rate on 30 year jumbo loans was 3.90 percent with 0.46 mortgage points. In the prior week's survey, the average 30 year jumbo mortgage rate was 3.80 percent with 0.37 points.
The lowest jumbo refinance rates today in our database are below the average rate at 3.50 percent with points and at 3.75 percent without points. Our database of rates contains different lenders and different rates for each state. Another factor that will have a bearing on what mortgage rates you're quoted is your credit score, the loan amount and the loan-to-value (LTV) ratio.
Today's mortgage rates on 15 year conforming loans are now back above 3.00 percent in the MBA survey this week. The average 15 year contract mortgage rate is at 3.01 percent with 0.42 points, an increase from the previous week's average rate of 2.96 percent with 0.36 mortgage points. Although 15 year conventional mortgage rates are higher this week we have lenders quoting rates well below the average of 3.01 percent.
Our rate database for the state of California has lenders quoting 15 year conventional mortgage refinance rates as low as 2.25 percent with 2 mortgage points. Right now the lowest refi rates without points on our CA rate list are at 2.375 percent. The lowest rates in our database for Texas are also at 2.25 percent with points and the lowest rates without points are at 2.625 percent.
Short term adjustable mortgage rates are also higher in this week's mortgage survey. 5 year adjustable mortgage rates averaged 2.62 percent, up from the prior week's average 5 year adjustable mortgage rate of 2.55 percent. Average points on 5 year adjustable loans were at 0.33 points, down from last week's average of 0.37 points.
As with fixed mortgage rates we have lenders quoting 5 year adjustable refinance rates well below the average rate. We have lenders quoting current refinance rates on 5 year adjustable loans in the state of Ohio at a low rate of 1.625 percent with points. The lowest 5 year adjustable refinancing rates without points for our list in OH are at 2.125 percent.
RatesORama.com Average Mortgage Rates