This week mortgage rates have decreased substantially for fixed-rate mortgages, while adjustable-rate mortgages experienced some slight increases. As rates continue to be much lower than a year earlier, mortgage applications to purchase and refinance homes have increased.
30-year fixed-rate mortgages decreased from 3.82% last week to 3.79% this week. One year ago, 30-year rates were at 3.92%.
15-year fixed-rate mortgages also dropped this week, reaching 2.98%, compared to 3.03% a week earlier. This is lower than one year ago, when 15-year rates were at 3.08%.
5-year adjustable-rate mortgages rose slightly to 2.89% this week compared to 2.88% the previous week. Last year at this time, 5-year rates were only minimally higher than they are now, at 2.91%.
1-year adjustable-rate mortgages increased significantly from 2.54% last week to 2.62% this week. One year ago, these rates sat at 2.41%, which is well below the current rate.
Despite drops in mortgage applications two weeks ago, according to data from the MBA Weekly Mortgage Applications Survey for the week ending October 16, 2015, on a week-to-week basis, mortgage applications rose 11.8% last week.
According to this same survey, the refinance share of mortgage activity dropped from 61.2% two weeks ago to 59.5% last week. Meanwhile, the adjustable-rate mortgage share of activity also decreased from 7.5% two weeks ago to 6.9% one week ago.
The FHA, VA and USDA share of all mortgage applications increased substantially last week compared to two weeks ago, with the FHA share of applications rising to 14.3% this week compared to 12.6% a week earlier, the VA share increasing from 11.5% to 12.7%, and the USDA share showing a slight change, rising to 0.6% compared to 0.5% previously.