This week all mortgage rates decreased simultaneously for the first time since the last week of July 2015. Most of these mortgage rates are currently much lower than one year ago, in September 2015, however they are still above the lowest rates we reached this year.

According to Freddie Mac, mortgage rates have finally decreased after an increasing trend during the past three weeks, while mortgage applications have continued increasing despite changes in mortgage rates.

30-year fixed-rate mortgages dropped from 3.91% last week to 3.86% this week. One year ago, 30-year rates were at 4.2%, well above their current rates.

15-year fixed-rate mortgages also decreased to 3.08% this week compared to 3.11% one week ago. This is much lower than the 3.36% rate that was in place one year ago at this time.

5-year adjustable-rate mortgages decreased only slightly this week, reaching 2.91% compared to 2.92% the previous week. Last year in September, 5-year rates were at 3.08%.

1-year adjustable-rate mortgages dropped from 2.56% last week to 2.53% this week. This is the only mortgage rate that is higher than it was a year ago, when it reached 2.43%.

Despite the increasing mortgage rates in the past few weeks, mortgage applications continued increasing last week, rising 13.9% compared to a week earlier, according to the MBA Weekly Mortgage Applications Survey ending on September 18, 2015.

The refinance share of mortgage activity was also affected by this increase in mortgage applications, rising from 56.2% two weeks ago to 58.4% last week. The adjustable-rate mortgage share of activity also rose slightly to 6.9% of all mortgage applications last week compared to 6.8% the previous week.

The FHA share of all mortgage applications dropped to 12.9% last week compared to 14.2% a week earlier, while the VA share of total applications decreased slightly from 10.7% two weeks ago to 10% last week. The USDA share of all mortgage applications dropped to 0.7% last week compared to 0.8% the previous week.

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