During the week, mortgage loan rates decreased to their lowest levels since last November on all loan types. A year ago at this time, the 15-year FRM averaged 2.85 percent. The five-year adjustable rate average fell to 3.1 percent with an average 0.4 point.
The average USA mortgage rate fell below a key threshold of 4 percent this week, its lowest level in five months.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to its lowest level since November 2016, 4.15 percent, from 4.24 percent, with points decreasing to 0.23 from 0.28 (including the origination fee) for 80 percent LTV loans. The worldwide tensions, coupled with a spate of weak economic data, have prompted more investors to move into safe haven instruments like U.S. Treasuries.
Mortgage rates fell for the third week in a row and fourth time in the past five weeks as markets remain jittery about North Korea, Syria, and other global hotspots. Coincident with the decline in Treasury yields, the average 30 yr mortgage rate fell 6 bps to 4.22%, a 21 week low. It's wonderful that a modest rise in mortgage rates can lead to a collapse in refi's but that also tells you that there aren't many homes left to refi at these historically low rates.
Bankrate.com, which puts out a weekly mortgage rate trend index, found that the experts it surveyed were nearly evenly divided on where rates are headed in the coming week. The market composite index - a measure of total loan application volume - decreased 1.8 percent.
The Refinance Index increased 0.2 percent from the previous week.
The refinance share of mortgage activity accounted for 42.4 percent of all applications.