The Mortgage Bankers Association (MBA) in the United States released its mortgage application survey, which tracks mortgage application activity, including refinancing and purchase loans, based on seasonally adjusted data. According to the latest report, this index fell by 6.0% to 178.2 points, reaching its lowest level since 1996.
Purchasing and Refinancing Indices Declined
According to the same report, the purchasing index decreased by 5.7% to 136.6 points, while the refinancing index dropped by 6.6% to 384.6 points. This indicates a decreased demand for both home purchases and refinancing of existing loan agreements.
30-Year Mortgage Interest Rates at Record High
In the United States, the 30-year mortgage interest rate continued its upward trend for the fourth consecutive week, reaching 7.53% with a 12 basis point increase. This marks the highest level since December 2000. Additionally, there was a 32-point increase in the four-week average of 30-year loan interest rates and a 78-point increase compared to the same period last year.
Other Interest Rates Also Increased
The 15-year mortgage interest rate rose to 6.86% with a 13 basis point increase. The 5-year ARM (Adjustable Rate Mortgage) interest rate also increased by 2 basis points to 6.49%. Furthermore, the 30-year jumbo home loan interest rate saw a 17 basis point increase, reaching 7.51%. The jumbo home loan interest rate has once again reached historic highs, as seen just a week ago.