HousingWire‘s Mortgage Rates Center showed that 30-year conforming rates averaged 6.86% on Tuesday, down 5 basis points from one week ago. Rates for 30-year jumbo loans shed 12 bps and averaged 6.80%, while rates for 30-year loans through the Federal Housing Administration (FHA) were down 6 bps to 6.59%. HousingWire’s rates are based on an analysis of locked loans across all borrower credit profiles.
The drop in rates is reflected in higher consumer demand, with the Mortgage Bankers Association (MBA) reporting that mortgage applications rose 3.6% for the week ending Aug. 7. The trade group’s purchase index rose 3% and its refinance index was up 5%.
“Mortgage rates edged lower last week after five consecutive weeks of increases, providing some relief for prospective borrowers,” said Bob Broeksmit, the MBA’s president and CEO. “While the decline helped boost both purchase and refinance applications, rates remain near their highest level in a year, continuing to challenge affordability and limiting refinance opportunities.”
