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Weekly Update: Mortgage Rates Drop, Applications on the Rise

In Freddie Mac’s weekly mortgage rate update for the week ending June 8, 2017, 30-year fixed mortgage rates continue to fall to the lowest they’ve been in seven months at 3.89 percent, or five basis points. Last week, 30-year fixed was 3.94 percent and a year ago the average sat at 3.60 percent.

Fifteen-year fixed mortgage rate also saw a drop compared to a week prior, down to 3.16 percent from 3.19 percent. Year-over-year, however, it is up from 2.87 percent. The 5-year treasury-indexed hybrid adjustable-rate mortgage went unchanged week-to-week at 3.11 percent. A year ago this time, the 5-year ARM was 2.82 percent. The 10-year treasury yield also fell three basis points.

The Mortgage Bankers Association (MBA) weekly survey ending June 2 and adjusted for the Memorial Day holiday, showed an increase in mortgage application volume as measured by their Market Composite Index of 7.1 percent seasonally adjusted compared to the prior week. On an unadjusted basis, that number is down 15 percent.

Both the seasonal purchase index and the refinance index are up this week, at 10 percent and three percent respectively. The seasonal purchase index is the highest it has been since May 2000.  However, the unadjusted purchase index is down 14 percent but up six percent year-over year.

In terms of total activity, the refinance share accounted for 42.1 percent, down from 43.2 percent last year, and the ARM share total was also down to 7.4 percent.

FHA share of total applications showed little change, up to 10.6 percent from 10.5 percent the week prior. USDA share remains unchanged from last week, sitting at 0.8 percent.

Freddie Mac releases its weekly mortgage rate report every Thursday. MBA releases their survey on each Wednesday of the week.

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