Lower Mortgage Rates Spur Mortgage Applicaitons Higher- Mortgage Rates at 5.02%

Lower mortgage rates over the past week drove mortgage applications higher for home purchases and mortgage refinancing. In the latest mortgage survey released by the Mortgage Bankers Association (MBA) the average contract mortgage rate for a 30-year mortgage decreased to 5.02 percent from 5.15 percent, with discount points increasing to 1.23 from 1.09.

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Today’s Mortgage Rates

30-year mortgage rates are nearing 5.00 percent again, in Freddie Mac’s Primary Mortgage Market Survey released last Thursday average 30-year mortgage rates were at 5.08 percent with 0.7 discount points. Feddie’s weekly mortgage survey will be released later this morning.

The average contract rate for 15-year mortgages is back under 4.50 percent at 4.45 percent, a decrease from the prior week’s average contract rate of 4.57 percent according to the MBA’s weekly mortgage survey. Discount points for 15-year mortgages increased to 1.13 discount points from 0.85 discount points the prior week.

One-year adjustable mortgage rates also decreased this past week. The average contract rate for a one-year adjustable rate mortgage decreased to 6.69 percent, down from the previous week’s average contract rate of 6.71 percent. Average discount points decreased to 0.19 from 0.20.

As a result of the lower mortgage rates the MBA’s Market Composite Index, which measures mortgage loan application volume increased 17.0 percent on a seasonally adjusted basis from one week earlier. The Refinance Index, which measures mortgage refinance application volume jumped 22.5 percent, the biggest increase since mid March.