Mortgage rates in the US remained stable last week, posting only minor changes and encouraging more home owners to refinance current home loans.
According to a weekly Mortgage Bankers Association report, the average interest rates on both 15- and 30-year fixed-rate home loans changed by only a single basis point from the week before, though in different orders.
Average rates on 15-year mortgages dropped to 4.02 percent from 4.03 percent in the previous week, while 30-year loans increased to 4.8 percent, compared with 4.79 percent the previous week.
Due to changes in the average rates paid on both types of mortgages, the effective rates on 30-year loans actually fell, while the rates on 15-year loans increased.
Average points paid on 15-year mortgages surged to 0.90, an increase from 0.85 points the week before, while points paid on 30-year loans fell to 0.96, a decrease from 1.07 points in the previous week.
With rates stabilising, demand for mortgage refinancing continues to rise, with refinance applications jumping a seasonally adjusted 2.7 percent from the week before. Refinance applications grew by an average of 3.3 percent over the past month, since 30-year rates fell back to below five percent, after a brief spike.
Applications for home loans also rose by a seasonally adjusted 2.7 percent last week. Purchase applications increased by an average of 1.0 percent over the past month and decreased by 15.3 percent, compared to the same week last year.