interestRates

Weekly Mortgage Rate Update

By: FreeValues Staff, August 31, 2016

According to the most-recent weekly survey conducted by the Mortgage Bankers Association (MBA) – Aug. 31, 2016 – mortgage rates have remained flat for 30-year fixed loans and stand at 3.67 percent.

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Overall, mortgage applications have increased 2.8 percent for the week ending Aug. 26. Below is a breakdown of the changes, per the MBA’s Weekly Mortgage Applications Survey.

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The rise in mortgage-applications, however slight, ends two consecutive weeks of declines. The rise mostly is due to borrowers looking to refinance in an effort to save even more money on their monthly nut while interest rates hover at near-record lows.

“The last time rates were at these levels, the refi index was almost twice as high,” the MBA’s Michael Fratantoni told CNBC. “At these rate levels, there are borrowers who still stand to benefit, but there are many homeowners who have already taken advantage of refinancing and are not yet incentivized to do it again.”

A key statistic in the report points to the reason lackluster home sales have defined most of August. This week’s 1-percent jump in mortgage applications to purchase, as opposed to refinance, indicate a lull in home buying that can be attributed to a short supply of properties on the market.

A blog on HousingWire sums it up: “If last week’s mortgage report didn’t show exactly how quiet the mortgage market is, this new Weekly Mortgage Applications Survey from the Mortgage Bankers Association should only further reinforce it.”

Headquartered in Washington D.C., the Mortgage Bankers Association is the national association representing the real-estate finance industry. Since 1990, it has conducted a weekly survey that covers more than 75 percent of all U.S. residential-mortgage applications. Respondents include commercial banks, mortgage bankers and thrifts.

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