Mortgage Rates Hit 2017 High

For the week ending March 3, MBA's composite index rose 3.3 percent seasonally adjusted.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.57% from 3.51%.

The report also shows that the refinance share of mortgage activity increased to 45.4 percent of all applications, up from 45.1 percent the previous week.

Average 30-year fixed mortgage rates hit their highest levels of the year in the latest Freddie Mac survey after declining during the previous three weeks.

MBA's seasonally adjusted gauge on applications to refinance an existing home loan gained 5.2 percent to 1,357.6, the highest since the week of December 16, 2016. Unadjusted, purchase activity was 4 percent higher than during the same week in 2016.

The average loan size for purchase applications also reached a survey high at $313,300.

Likewise, the 15-year FRM increased to 3.42%, up from 3.32% last week and 2.96% last year. Borrowers will, however, be extremely exposed if there is a sharp increase in short-term interest rates. Points for 80% LTV loans increased to 0.26 from 0.25.

The FHA share of total applications decreased, however, to 11.8 percent from 12.3 percent the previous week, while the VA share of total applications decreased to 11.6 percent from 11.7 percent the previous week. The USDA share of total applications remained unchanged at 0.9 percent from the week prior. For 30-year fixed-rate mortgages backed by the FHA, rates increased to 4.18% from 4.07%, and points for 80% LTV loans decreased to 0.32 from 0.37.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.48%, up from 3.35%.

For the previous week, the survey which ended on February 24, 2017, the MBA saw mortgage applications rise for the first time following a two week decline.

  • Zachary Reyes