30-year mortgage rate rises above 5%
The average rate on a 30-year fixed-rate home loan edged back above 5% last week as mortgage applications fell, the Mortgage Bankers Assn. said Wednesday.
The average rate on a 30-year fixed-rate loan, assuming a 20% down payment, increased to 5.02% from 4.89%. But upfront points paid to lenders, including the origination fee, averaged 1.11% of the loan balance, down from 1.13%, the trade association said.
The average 15-year rate rose to 4.44% from a record low of 4.32%, with average points paid unchanged at 1.04% of the loan amount.
The average rate on 30-year loans slipped below 5% in the middle of last month, based on the association’s survey of lenders. That triggered a mini-boom in applications.
Applications for purchase loans slipped 5% last week from the previous week, the bankers group said. Applications for refinance loans, which have made up about two-thirds of the total recently, edged down 0.1%. The decline in overall applications was 1.8%.
The trade group said this week that it expected 30-year loan rates to average 5% this quarter but climb back to 5.6% by late next year.
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