Mortgage activity remained stable during a tumultuous week for the economy.
Applications increased for the first time in seven weeks, the Mortgage Bankers Association reported Wednesday. Its Weekly Applications Survey was up 0.5% for the week ending Nov. 8, compared to the prior seven days. Purchase and refinance indexes were relatively flat week-over-week, as rates for various loan products fluctuated.
Joel Kan, the MBA’s vice president and deputy chief economist, explained rate increases on higher Treasury yields in response to President-elect Donald Trump’s election victory last week.
“The Federal Reserve’s 25-basis-point rate cut was already anticipated and did little to move the markets,” said Kan in a press release.
Mortgage experts reacting to last week’s move by the Federal Open Market Committee anticipate easing mortgage rates going into the new year. In the near-term, average contract interest rates wavered.
The 30-year fixed rate mortgage reached its highest level since July, rising 5 basis points to 6.86%, the MBA reported. Rates for 30-year jumbo mortgages inched up 2 basis points to 7.00% last week. Jumbo points however fell to 0.48 from 0.65, and its effective rate fell.
The rate for 30-year, Federal Housing Administration-backed loans fell, dropping six basis points weekly to 6.69%. The 15-year FRM meanwhile was unchanged at 6.21%, although the effective rate rose with points to 0.63.
Refinance activity still makes up just under 40% of all application activity, and fell to its lowest level since May, the MBA said. Its Refinance Index fell 2% weekly, but remains up 43% from the same time last year with today’s rates still competitive compared to last fall.
