With the election season coming to an end last week, interest rates posted their highest levels since early 2016, according to the Nov. 16 Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA).
Rates on 30-year fixed mortgages came in at 3.95 percent, up from 3.77 percent, numbers that haven’t been seen since January. Rates for FHA and jumbo fixed mortgages increased, as well. FHA rates came in at 3.73 percent, up from 3.61 percent, and jumbo-loan rates came in at 3.89 percent, up from 3.75 percent.
Meanwhile, applications for those seeking homeownership decreased dramatically – 9.2 percent – for the period ending Nov. 11. Of those applications, those seeking home-refinancing loans dropped to 61.9 percent, from 62.3 percent, while those seeking adjustable-rate loans rose to 4.7 percent, from 4.5 percent.
“Following the election, mortgage rates saw their biggest week-over-week increase since the taper tantrum in June 2013, and reached their highest level since January of this year,” MBA President and CEO David Stevens said in a press release. “Investor expectations of faster growth and higher inflation are driving the jump up in rates, and rates have now increased for five of the past six weeks, spurring a commensurate drop in refinance activity.”
Headquartered in Washington D.C., the MBA 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.