By Mike Colpitts
Fixed mortgage rates rose for the third straight week slightly as pent-up demand for housing got more applicants to apply for home mortgages. The rate on a 30-year fixed rate loan rose marginally just one basis point for the week to 4.81%.
However, rates for all other types of mortgages declined for the week, according to the Freddie Mac survey. The fixed 15-year rate loan dropped a single basis point to 4.08% for the week. The five year Treasury indexed adjustable rate hybrid fell by a similar margin. A year ago the same mortgage was at 4.4%. The one year ARM remained at 3.26%.
The Mortgage Bankers Association weekly index showed that applications for home loans rose for the week, 11.3% on a seasonally adjusted basis from a week ago. Refinancing led the way, rising 11.7%. Applications for purchase money mortgages increased 9.5%.
However, the percentage of refinances showed a weaker volume of applications for the second straight week after hitting its lowest level since January 2010 last week. Refinancing composed 69.3% of all applications, declining one percent from the prior week, according to the survey.
“Applications increased this week relative to the holiday week,” said bankers’ chief economist Michael Fratantoni. “Looking over the past two weeks, purchase applications are flat, and refinance applications are down about five percent.”
A 30-year fixed rate mortgage finalized by mortgage borrowers rose to 4.81% from 4.80% for those surveyed by the bankers association with 1.02 point on a typical 80% loan-to-value mortgage.