A “Sale” sign for sale will be on sale in Pasadena, California on March 5th, 2025.
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The mortgage rate fell to the lowest interest rate since last October, and was even higher last week after a massive jump.
The total mortgage application rose 11.2% each week, according to the Mortgage Association’s seasonally adjusted index.
The average contract interest rate for a 30-year fixed-rate mortgage with conforming loan balances is below $806,500, falling from 6.73% to 6.67% last week, with points including origin fees for a 20% down payment loan increased from 0.60 to 0.63. The rating was 17 basis points lower than the same week as a year ago.
“The mortgage rate has fallen for the sixth consecutive week, with the fixed interest rate falling to 6.67% in 30 years, the lowest level since October 2024,” said MBA economist Joel Kang.
Mortgage refinance applications, which are most affected by weekly rate changes, rose 16% from the previous week, 90% higher than the same week a year ago. The majority of borrowers today are far below what is available today, but those who have purchased over the past two years when the rate was high may be able to save some. The rate of increase is mainly due to the fact that the total volume is still very low.
Mortgage applications to buy mortgages rose 7% a week, 4% higher than the same week a year ago.
“As we entered the spring home buying season, activities increased in all loan categories. Government purchase applications increased by 11%. The FHA rate fell to 6.34%. Furthermore, the average loan size was higher, with the purchase loan amount reaching $460,800, the highest survey up to 1990,” Kan added.
Another survey with Mortgage News Daily shows that it’s essentially flat to begin this week after falling on Monday and rising at the same amount on Tuesday. The release of the monthly consumer price index on Wednesday, a key measure of inflation, could send more clearly in either direction.
