Average 30-year fixed rate mortgages in the US soared four basis points to 4.10 percent this week, while refinance applications declined 4.6 percent. At the same time, the purchase application volume climbed 3.3 percent over the period, according to latest data by the Mortgage Bankers Association (MBA).
The data comes from a weekly application survey that covers approximately 50 percent of all home loan organisations and tracks the average rate for 30-year and 15-year fixed rate mortgages as well as the volume of both refinance and purchase applications.
Meanwhile, average 15-year fixed rate mortgages rose to 3.30 percent, up from 3.16 percent last week and 3.13 percent two weeks ago.
The rise in mortgage rates was attributed to the improving economic outlook in recent weeks, which has seen investors shifting their money from long-term US Treasury bonds to the stock market.
“With the economy getting stronger, the markets are beginning to recognise that rates are too low,” noted Joel Naroff, President of Naroff Economic Advisors. “That means mortgage rates should rise.”
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