In the US, mortgage applications continued their declining trend for the third consecutive week ending on October 27th. The noteworthy aspect during this period was an unexpected decrease in the 30-year mortgage interest rates.
According to the Mortgage Bankers Association (MBA) data, the market index encompassing refinancing and home purchase loans witnessed a seasonal adjusted drop of 2.1%, reaching a level of 161.8 points.
Indexes on the Decline According to the Report
According to the MBA report, the purchase index decreased by 1.4%, dropping to 125.2 points. During the same period, the refinancing index saw a decline of 3.5%, reaching 341.7 points.
In contrast, the 30-year mortgage interest rate experienced its first decrease in 7 weeks, dropping by 4 basis points to 7.86%. This decline signifies a notable shift in interest rates, which have been at their highest levels for approximately 23 years.
Data reveals an average increase of 33 points in the 30-year loan interest over the last four weeks. Compared to the same period last year, this marks an increase of 80 points.
For short-term 15-year mortgage rates, a 6 basis point increase led to a rate of 7.14%. On the other hand, the 5-year ARM loan interest dropped by 22 basis points, reaching 6.77%.
However, the 30-year jumbo (exceeding $647,200) mortgage interest saw a slight increase of 2 basis points, reaching 7.80%.