Mortgage rates increased this week after reaching their lowest level since May 2015 one week ago. Despite this increase, mortgage applications rose last week when mortgage rates were at low levels.
Although mortgage rates have risen this week, they are still much lower than a year earlier, according to Freddie Mac. Here is a quick rundown of mortgage rates this year compared to 2014.
30-year fixed-rate mortgages increased to 3.89% this week compared to 3.84% a week earlier. Despite this increase, 30-year rates remain much lower than one year ago, when they were at 4.1%.
15-year fixed-rate mortgages rose from 3.06% last week to 3.09% this week. One year ago at this time 15-year rates were at 3.24%, which is a lot higher than they are now.
5-year adjustable-rate mortgages increased slightly from 2.9% one week ago to 2.93% this week. During the first week of September 2014 these rates were at 2.97%, marginally above their current rate.
1-year adjustable-rate mortgages remained at 2.62% for the fourth consecutive week. One year ago these rates were at 2.4%, making 1-year rates the only rates that are currently higher than a year ago.
Despite the increase in mortgage rates this week, mortgage applications rose 11.3% last week when mortgage rates were at the lowest since mid-May 2015, according to the Weekly Mortgage Applications Survey ending August 28, 2015.
With this increase in mortgage applications, there was an increase in the refinance share of mortgage activity, which rose to 58.7% of all applications last week, compared to 55.3% the previous week. The adjustable-rate mortgage share of activity also increased last week, reaching 7.5% of total applications compared to 6.8% a week earlier.
The FHA share of all mortgage applications dropped from 13.1% three weeks ago to 12.7% two weeks ago, while the VA share of total applications decreased to 9.8% two weeks ago compared to 11.4% the previous week. The USDA share of all applications dropped to 0.7% two weeks ago from 0.8% a week earlier.