The 30-year fixed-rate mortgage jumped to its highest level since June of 2016 and now stands at 3.7 percent, up from 3.67 percent, according to the Sept. 21 Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA). Rates for jumbo-loan and Federal Housing Administration-backed mortgages also increased to 3.69 and 3.56, respectively.
Mortgage applications experienced a significant decrease of 7.3 percent for the period ending Sept. 16.
The fall of mortgage applications following three weeks of robust gains points to an overall consumer fear of a rate hike – a rate hike that has more than been hinted at by the Federal Reserve for the last month.
“Mortgage rates increased to their highest level since June last week as comments by some Fed officials made it appear that the Federal Reserve is closer to raising rates,” Michael Fratantoni, the MBA’s chief economist, told Investing.com.
Refinancing continues to be a trend, with making up 63.1 percent of all mortgage applications, compared with 62.9 percent last week; however, the total number of refinances has decreased 8 percent and is now at the lowest level since the start of Summer (June 2016).
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