A recent report by the Mortgage Bankers Association shows that mortgage applications actually rose during the first week of May. As of May 6, the total number of applications was up 0.4 percent. While that is indeed a very small increase, it remains the first increase since early April.
In addition to new mortgage applications, the number of applications for refinancing also improved, rising 0.5 percent over the last week of April. However, the total number of refinance applications to new mortgage applications actually decreased, dropping from 52.9 percent to 52.8 percent.
On the other hand, the number of adjustable-rate mortgages to other types of mortgages rose to 5.7 percent, while FHA loans declined from 13.5 percent to 13 percent. VA loans took part of that decrease, increasing to 11.7 percent of all mortgage applications from the previous week’s 11.5 percent. USDA mortgage applications remained at a steady 0.7 percent.
As far as interest rates go, the average rate for a 30-year fixed-rate mortgage with a total balance of $417,000 or less dropped from 3.87 percent to 3.82 percent, the lowest point this year. The cost of a point decreased from 0.36 to 0.34. For jumbo mortgages of more than $417,000, the average interest rate fell to 3.74 percent from 3.79 percent.
For those with a 15-year fixed mortgage, the average interest rate dropped to 3.06 percent, while 5/1 adjustable rate mortgages actually saw interest rates increase, up to 2.93 percent from 2.91 percent.
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