Interest rates falling to lows not seen since June

by MPA25 Oct 2013

Interest rates have edged down, with some hitting lows not seen since June.

MBA figures have shown the average interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 4.39% -- the lowest rate since June -- from 4.46% last week. The average rate for 30-year FRMs with jumbo balances also fell to its lowest rate since June, 4.43%. last week, the average rate for a jumbo 30-year FRM was 4.51%.

Average rates for FHA-backed loans also fell slightly, from 4.16% last week to 4.15% this week.

Rates for 5/1 adjustable-rate mortgages were unchanged this week at 3.25%.

In spite of the drop in rates, mortgage applications crept down slightly. The MBA’s Market Composite Index, which measures loan application volume, fell 0.6% on a seasonally adjusted basis from last week. On an unadjusted basis, the index fell 1%.

The Refinance Index also fell, dropping 1% from the previous week. Refinancing’s share of total mortgage activity was down from 66% last week to 65% this week.

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