Mortgage rates fall, applications rise
After four straight weeks of increases, fixed mortgage rates recently decreased, according to data from the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey.
For the week ending April 15, 2011, the average contract interest rate for 30-year fixed mortgages fell to 4.83 percent, down from 4.98 percent the previous week. Average rates for 30-year fixed-rate mortgages has shown increases for four consecutive weeksbefore the Mortgage Bankers Association (MBA) published its latest report this morning.
The average rate for 15-year fixed-rate mortgages saw a significant decrease, as well. The average contract interest rate for 15-year fixed loans declined to 4.07 percent from 4.17 percent the prior week, the MBA said.
Average points for 30-year fixed mortgages increased to 1.07 from 0.93 the previous week, while average points for 15-year fixed loans decreased to 1.02, down from 1.22 the prior week.
Mortgage applicants increase
In addition to observing the decreases in average fixed mortgage rates, the MBA also noted an increase in mortgage applications week over week. For the week ending April 15, 2011, mortgage applications rose 5.3 percent from one week earlier.
“Purchase application volume jumped last week largely due to another sharp increase in applications for government loans,” Michael Fratantoni, MBA’s Vice President of Research and Economics, said. “Borrowers were likely motivated to apply for loans before the scheduled increase in FHA insurance premiums.”