Interest rates are continuing to rise and are at their highest levels since January 2016, according to the Nov. 23 Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA).
The average rate on a 30-year fixed mortgage stands at 4.16 percent, up from 3.95 percent. The average rate for Federal Housing Administration (FHA) and jumbo-loan mortgages also increased to 3.90 percent, up from 3.73 percent, and 4.04 percent, up from 3.89 percent, respectively.
“Mortgage rates have continued to move higher in the post-election period, as investors worldwide are looking for increases in growth and inflation, with the 30-year mortgage rate reaching its highest weekly average since the beginning of 2016,” the MBA’s Michael Fratantoni said in the report.
Fratantoni noted that, while applications for home refinancing dropped to 58.2 percent, from the previous week’s 61.9 percent, the overall purchase volume spiked.
“The increase in purchase activity was driven by borrowers seeking larger loans, and that drove up the average loan amount on home-purchase applications to $310,000, the highest in the survey, which dates back to 1990,” he said.
The report put the overall purchase volume at a 13-percent increase, compared with the previous week’s 11-percent increase.
“The impact of the election is even more apparent in this week’s mortgage-application report, as the 30-year mortgage rate recorded its highest weekly average since the beginning of 2016,” a story on HousingWire.com states.
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.