The interest rate on 30-year fixed mortgages recorded its highest level since June of 2016, increasing to 3.73 percent, from 3.68 percent, according to the Oct. 19 Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA). The rate for jumbo-loan-backed mortgages also came in at its highest level since June: 3.72 percent, up from 3.67 percent. The rate for Federal Housing Administration-backed mortgages stayed flat at 3.54 percent.
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For the period ending Oct. 14, applications for mortgages increased – barely – .6 percent, compared with last week’s significant 6-percent drop. Of those applications, the home-refinancing share decreased to 61.5 percent, from 62.4 percent, and the adjustable-rate-mortgage share stayed the same at 4.1 percent. The figures refer to the number of homeowners applying for the various options when submitting loan documents.
“Refinance applications dropped to the lowest level since the week of the Brexit vote as mortgage rates reached their highest level since then,” MBA chief economist Michael Fratantoni told CNBC. HousingWire.com said the statistics might have been influenced by a short business week because of the Columbus Day holiday.
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.