Mortgage rates fall below 4 percent. Again.
The average rate for a 30 year fixed rate mortgage declined 4 basis points to 3.94 percent since last week while the purchase application volume declined a notable 11.2 percent and the refinance application umped 13.5 percent over the same period.
This chart shows the average contract interest rates of 15- and 30-year fixed rate mortgages over the past five years. Mortgage rates have been consistently on the decline since 2008, with little sign of going back up.
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The Mortgage Bankers Association (MBA) publishes the results of a weekly applications survey that covers roughly 50 percent of all residential mortgage originations and tracks the average interest rate for 30 year and 15 year fixed rate mortgages as well as the volume of both purchase and refinance applications.
The purchase application index has been highlighted as a particularly important data series as it very broadly captures the demand side of residential real estate for both new and existing home purchases.
The latest data is showing that the average rate for a 30 year fixed rate mortgage (from FHA and conforming GSE data) declined 4 basis points to 3.94% since last week while the purchase application volume declined a notable 11.2% and the refinance application umped 13.5% over the same period.
The following chart shows the average interest rate for 30 year and 15 year fixed rate mortgages since 2006 as well as the purchase, refinance and composite loan volumes (click for larger dynamic full-screen version).