This week mortgage rates remained at very similar levels than a week earlier, following the decrease in mortgage applications last week. The decrease in mortgage applications also took place for new home purchases, which decreased 6% during August 2015 compared to a month earlier, although it's still higher than a year ago.
Here is a brief review of the main changes in mortgage rates this month, according to Freddie Mac:
30-year fixed-rate mortgages increased slightly to 3.9% this week compared to 3.89% a week earlier.
15-year fixed-rate mortgages also rose minimally from 3.09% last week to 3.1% this week.
5-year adjustable-rate mortgages dropped to 2.91% this week compared to 2.93% the previous week.
1-year adjustable-rate mortgages rose slightly from 2.62% last week to 2.63% this week.
Although mortgage rates barely changed compared to a week ago, mortgage applications dropped 6.2% for the week ending September 4, 2015, according to the MBA Weekly Mortgage Applications Survey.
Mortgage applications for new home purchases dropped 6% in August compared to a month earlier, as stated by the MBA Builder Application Survey. Despite the drop in new home purchases during August 2015, applications for new homes are 19% higher than they were one year ago, with the average loan size for new homes at $317,035 in August compared to $316,995 in July this year.
The refinance share of mortgage activity dropped from 58.7% two weeks ago, to 56.9% of all mortgage applications last week. The adjustable-rate mortgage share of activity decreased from 7.5% of total applications two weeks earlier to 6.9% one week ago.
The FHA share of all applications rose to 13.4% last week compared to 12.7% a week earlier, while the VA share of all applications increased from 9.8% two weeks ago to 10.8% last week. The USDA share of total applications rose from 0.7% to 0.8% one week ago.