Interest rates increased from a 3.71-percent drop last week and posted their highest gains since the Summer, according to the Nov. 2 Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA).
Rates on conforming 30-year fixed mortgages increased to 3.75 percent. Federal Housing Administration (FHA) and jumbo-loan-backed mortgages increased, as well. FHA loans now stand at 3.59 percent, up from 3.56 percent, with jumbo loans at 3.74 percent, up from 3.71 percent.
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Mirroring the news for the period ending Oct. 28, mortgage-application activity experienced a mild decrease of 1.2 percent, compared with the previous period’s whopping 4.1-percent downtown, and is at its lowest level since May.
Of those applications, the home-refinancing share remained flat at 62.7 percent, and the adjustable-rate-mortgage share increased to 4.4 percent, up from 4.2 percent. Additionally, applications for FHA-backed mortgages held steady at 11.1 percent, applications for Veterans Affairs-backed mortgages increased to 12.4 percent, up from 12.2 percent, and applications for U.S. Department of Agriculture-backed also held steady at 7 percent.
“Globally, rates have begun to creep upwards as investors anticipate less aggressive monetary policies from central banks, and U.S. rates are being pushed upwards in response,” Michael Fratantoni, chief economist for the MBA, told CNBC. “Additionally, new data show continued positive signals regarding the job market and rising inflation, indicating that the Fed is likely to hike in December and will continue increasing rates next year.”
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.