30-year mortgage rate tops in 15 years
Freddie Mac's average 30-year fixed rate soared to 6.7% last week, almost one-half point higher than the previous week's 6.29% rate and more than double the 3.01% rate from one year ago.
The last time Freddie recorded average rates this high was July 19, 2007, more than 15 years ago.
Refinance mortgage applications have almost vanished, dropping 84% from a year ago, according to the Mortgage Bankers Association. Purchase applications are down 29% from a year ago.
Are there are any home lending uptick trends?
Yes.
The adjustablerate mortgage share increased to 10.4% of all applications, according to the MBA. One year ago, ARMs were just 3.4% of total applications.
Another bolt of business is the home equity lines of credit and closedend second mortgage business. For the second quarter of the year, $72 billion of second liens were originated — 50% more than the same quarter one year ago, according to Inside Mortgage Finance.
Brace yourself. This week might very well find us at 7% on the 30year fixed and 6% for a 15year fixed, which stood at 5.96% last week.
Freddie Mac rate news: The 30-year fixed rate averaged 6.7%, 41 basis points higher than the previous week. The 15-year fixed rate averaged 5.96%, 52 basis points higher than the previous week.
The Mortgage Bankers Association reported a 3.7% mortgage application decrease from the previous week.
Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $647,200 loan, last year's payment was $1,444 less than last week's payment of $4,176.
What I see: Locally, well
qualified borrowers can get the following fixedrate mortgages with one
point: a 30-year FHA at 5.875%, a 15-year conventional at 5.875%, a 30-year conventional at 6.25%, a 15-year conventional high-balance ($647,201 to $970,800) at 5.99%, a 30year conventional highbalance
at 6.875% and a 30-year purchase jumbo at 6.125%.
Eye-catcher loan of the week: a 30-year jumbo purchase mortgage locked at 5.875% for the first seven years interest only,
without any points.