This week 1-year mortgage rates reached the lowest level in over a month, while other mortgage rates showed a slight average increase compared to a week earlier.
According to Freddie Mac, fixed rate mortgages and 5-year adjustable-rate mortgages increased faintly this week compared to the previous week, while 1-year rates dropped to the lowest since the first week of August 2015.
Here is a brief rundown of the changes in mortgage rates this week compared to last week.
30-year fixed-rate mortgages increased slightly from 3.9% one week ago to 3.91% this week.
15-year fixed-rate mortgages also rose minimally to 3.11% this week compared to 3.1% a week earlier.
5-year adjustable-rate mortgages showed a slight increase as well, rising from 2.91% the previous week to 2.93% this week.
1-year adjustable-rate mortgages are the only ones that decreased this week, dropping substantially to 2.56% compared to 2.63% one week ago. This is the lowest 1-year rate in over a month, when they reached 2.54% on August 6, 2015.
Despite the large decrease in 1-year mortgage rates this week, and the very slight change in other rates during the past few weeks, mortgage applications dropped 7% one week ago compared to the previous week, according to data from the MBA Weekly Mortgage Applications Survey for the week ending September 11, 2015.
This same survey shows a slight decrease in the refinance share of mortgage activity, which dropped from 56.9% two weeks ago to 56.2% last week. The adjustable-rate mortgage share of activity also decreased during this period, reaching 6.8% of all mortgage activity last week compared to 6.9% a week earlier.
The FHA share of all applications rose considerably last week, increasing to 14.2% compared to 13.4% two weeks ago, while the VA share of total applications dropped slightly from 10.8% two weeks ago to 10.7% last week. The USDA share of all applications remained at 0.8% last week, as it was a week earlier.