This week mortgage applications decreased by 4.7% compared to last week while 30-year mortgages increased their rates by 0.11%, which, according to Freddie Mac, is the largest increase in mortgage rates we have seen this year.
30-year fixed-rate mortgages increased this week from 3.52% last week to 3.63% this week, which is the highest mortgage rate we have seen this year when it comes to 30-year rates.
15-year fixed-rate mortgages increased their rates to 2.79% compared to 2.76% last week. This is the second highest rate 15-year mortgages have reached in 2013.
5-year adjustable-rate mortgages are the only ones that decreased this week, going to from 2.63% last week to a record low of 2.61% this week, which is the lowest rate we have seen this year.
1-year adjustable-rate mortgages also increased their rates this week although very slightly compared to the fixed rate mortgages, reaching 2.64% this week compared to 2.63% last week.
This increase in interest rates might have been caused by the announcement that job growth last week had been stronger than anticipated.
Due to this increase of interest rates, the refinance share of mortgage applications reached a record low level of 76% this week, a level that hasn't been seen since May 2012, down from the 77% trend we had been seeing during the last few weeks.
On the other hand, the share of adjustable-rate mortgage activity increased to 5% compared to 4% last week.