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Mortgage rates continued to climb last week, with fixed rates mortgages reaching the highest levels in seven months.
The 30 year fixed rate mortgage for the week ended March 17 averaged 5.95 percent with an average of 0.7 points. Last week the average rate was 5.85 percent with 0.6 points. The last time the 30 year rate was at this level was in July, 2004 when the average for the month was 6.06 percent. At that time it was heading down from June's monthly average of 6.29, the high for the year. Last year at this time the rate was 5.38 percent.
The 15 year mortgage rate for the most recent week was 5.47 percent with 0.7 points, up .08 percent from the previous week. A year ago the monthly average was 4.74 percent. The 15 year also hit its 2004 high in June at 5.66 percent. This week's rate is the highest since that June peak.
The 1-year adjustable was down to 4.20 percent this week with 0.8 points. Last week it was 4.24 percent and in March of 2004 it averaged 3.41 percent with 0.6 points.
Freddie Mac reported the 5-1 at 5.31 percent with 0.7 points, up from 5.22 percent last week. No historical information is available as the corporation only included this ARM product in its survey beginning January 1, 2005.
The mortgage Bankers Association released its report for the week ending March 18 on Wednesday. Its mortgage figures were in unusual agreement with those of Freddie Mac: 30-year up .04 to 5.95 percent, 15 year at 5.49, up from 5.47 the previous week; and 1-year ARMs down to 4.12 percent from 4.19 the week of March 11.
MBA reported a substantial decrease in mortgage activity both for the latest week and from one year earlier. Their mortgage application index decreased 9.5 percent on a seasonally adjusted bases and 9.2 percent unadjusted compared with the previous week and was down 39.3 percent from the application rate one year ago.
MBA stated the increase in mortgage rates has reduced application activity across the board, particularly for refinances.? The later category was down more than 60 percent from this time last year but, as other mortgage activity also slowed, continued to represent nearly 40 percent of all mortgage activity. Refinances comprised 42.9 of the market the previous week.
Adjustable-rate mortgages rose slightly to represent 33.5 percent of mortgage activity compared to 32.4 percent one week earlier.
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