This week all mortgage rates have increased simultaneously, with 1-year rates reaching the highest we've seen in over a year. This increase occurs just after an increase in mortgage applications that took place one week ago.
Here is a brief summary of the changes in mortgage rates between the last two weeks, according to Freddie Mac:
30-year fixed-rate mortgages increased to 3.95% this week compared to 3.93% one week ago.
15-year fixed-rate mortgages also rose from 3.16% last week to 3.19% this week.
5-year adjustable-rate mortgages increased this week as well, reaching 3.03% compared to 2.99% last week.
1-year adjustable-rate mortgages increased to 2.64% this week compared to 2.61% the previous week. Rates have not been this high since the last week of October 2013.
This increase in mortgage rates occurred just after a 1.2% increase in mortgage applications that took place last week, ending on December 4, 2015, compared to a week earlier.
According to an MBA Weekly Mortgage Applications Survey for the same period, conducted by the Mortgage Bankers Association (MBA), the refinance share of mortgage activity rose from 56.6% of all mortgage applications two weeks ago to 58.7% last week. Meanwhile, the adjustable-rate mortgage share of activity increased from 6.1% of total applications on the last week of November, to 6.2% last week.
The FHA share of all applications increased from 13.2% two weeks ago to 14% last week, as the VA share of total applications dropped to 10.8% last week compared to 11.3% a week earlier. The USDA share of all mortgage applications remained at 0.7% for the sixth week in a row.
Additionally, according to the MBA Builder Application Survey for November 2015, mortgage applications for new home purchases dropped 6% compared to a month earlier, with 68.4% of all loan applications corresponding to conventional loans, 18.1% to FHA loans, 12.6% to VA loans and 0.9% to USDA loans.
The average loan size for new homes dropped slightly in November to $320,850 compared to $320,881 a month earlier.