Thanks to BankRate June 6, 2018. Mortgage rates move higher as loan applications jump. A week after falling 16 basis points, the benchmark 30-year fixed-rate mortgage rose this week to 4.70 percent from 4.64 percent, according to Bankrate’s survey of large lenders. The 15-year fixed-rate mortgage also rose, climbing 9 basis points to 4.16 percent.
A week after falling 16 basis points, the benchmark 30-year fixed-rate mortgage rose this week to 4.70 percent from 4.64 percent, according to Bankrate’s survey of large lenders. The 15-year fixed-rate mortgage also rose, climbing 9 basis points to 4.16 percent.

Applications rise as inventory remains tight

Meanwhile, mortgage applications increased 4.1 percent last week compared with the week before, according the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

“Purchase applications increased over the week and were 9 percent higher than the same week a year ago, a sign that despite tight housing inventory, purchase activity in 2018 remains stronger than in 2017,” says Joel Kan, associate vice president for economic and industry forecasting at MBA.

Last week’s dip in mortgage rates contributed to the spike in loan applications, says Greg McBride, CFA Bankrate’s chief financial analyst.

“Mortgage applications increased in response to the previous week’s pullback in mortgage rates,” McBride says. “Would-be borrowers that were on the fence saw that as the opportunity to jump in.”

Mortgage rates this week

The benchmark 30-year fixed-rate mortgage rose this week to 4.70 percent from 4.64 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.04 percent. Four weeks ago, the rate was 4.74 percent. The 30-year fixed-rate average for this week is 0.10 percentage points below the 52-week high of 4.80 percent, and is 0.75 percentage points higher than the 52-week low of 3.95 percent.

The 30-year fixed mortgages in this week’s survey had an average total of 0.30 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 4.27 percent. This week’s rate is 0.43 percentage points higher than the 52-week average.
•The 15-year fixed-rate mortgage rose to 4.16 percent from 4.07 percent.
•The 5/1 adjustable-rate mortgage rose to 4.11 percent from 4.04 percent.
•The 30-year fixed-rate jumbo mortgage rose to 4.60 percent from 4.51 percent.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net