This week the number of mortgage applications decreased by 7.1% compared to last week, although mortgage rates decreased as well. This drop in US mortgage rates is good news for those of you who are looking for the lowest mortgage rate either to refinance your home or to buy a new one.
According to Freddie Mac, 5-year rates remain at a record-low this week while the rest of the mortgage rates have decreased for both fixed and adjustable-rate mortgages.
30-year mortgage rates decreased from 3.63% last week to 3.54% this week, which is the largest percentage decrease of mortgage rates we've seen this week.
15-year fixed-rate mortgages decreased their rates to 2.72% this week compared to 2.79% last week. This is the largest drop in 15-year rates since the beginning of 2013.
5-year mortgages have remained at the same rate as last week, at 2.61%, which is still the lowest rate we have seen this year for 5-year mortgages.
1-year adjustable-rate mortgages have decreased their rates from 2.64% to 2.63%, although this is still one of the highest 1-year rates we have seen this year.
The adjustable-rate share of total mortgage activity has remained at 5% of total applications for the second week in a row, while the refinance share of mortgage activity shrunk to 75% this week compared to 76% last week, reaching its lowest level since May 2012. This is the tenth week in a row that the refinance share of mortgage activity has decreased.