30-year mortgage rates highest in yearsStaff Writer | December 21, 2016
Mortgage application volume rose last week despite 30-year mortgage interest rates increasing to their highest level in more than two-and-a-half years.
Houses The Market Composite Index
On an unadjusted basis, the index increased 2 percent compared with the previous week. Mortgage applications have dropped 4.0 percent in the previous week.
Refinance applications rose 3 percent, while purchase applications also increased 3 percent on a seasonally adjusted basis.
Overall, the refinance share of mortgage activity, or the percentage of all new applications that were seeking refinancing, increased to 57.9 percent from 57.2 percent in the previous week.
The adjustable-rate mortgage or ARM share of activity increased to 6.5 percent of total applications, its highest level since February 2016.
Mortgage rates also continued to rise. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $417,000 or less increased to its highest level since May 2014, to 4.41 percent from 4.28 percent, with points rising to 0.38 from 0.36 for 80 percent loan-to-value ratio loans.
The interest rate for a jumbo 30-year fixed-rate mortgage rose to its highest level since April 2014, to 4.36 percent from 4.29 percent. The average interest rate for a 15-year fixed-rate mortgage increased to its highest level since January 2014, to 3.64 percent from 3.52 percent. ■