The long-term mortgage rate falls for the fifth straight week
The US 30-year fixed mortgage rate has hit its lowest level in two months, spurring homebuyer demand.
The average contract interest rate for the 30-year loan fell for the fifth consecutive week, down 10 basis points to 6.3% in the week ending April 7, according to the Mortgage Bankers Association. The trade group cited the slowing job market as the reason for the decrease in rates.
“Prospective homebuyers this year have been quite sensitive to any drop in mortgage rates, and that played out last week with purchase applications increasing by 8%,” chief economist Mike Fratantoni said in MBA’s report. “Refinance application volume was a mixed bag with total volume essentially flat, conventional volume down for the week, but V.A. refinance volume increasing.”
The overall mortgage loan application volume increased by 5.3% on a seasonally adjusted basis from the previous week.
Meanwhile, the average contract interest rate for the 15-year fixed-rate loans declined 19 basis points to 5.78%, and the average 5/1 adjustable-rate mortgage decreased 10 basis points to 5.51% week over week.
MBA’s applications survey, conducted weekly since 1990, covers more than 75% of all retail residential loan applications. Respondents include mortgage bankers, commercial banks, and thrifts.
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