Demand for mortgages jumped last week as interest rates retreated from recent highs, thanks to a flight to safety into bonds by investors seeking shelter from the economic uncertainty created by the war in Ukraine.
Mortgage rates have since rebounded as investors weigh the prospect that the economic fallout from Russia’s invasion of Ukraine could eventually lead to higher energy costs that fuel inflation.
The Optimal Blue Mortgage Market Indices show that after hitting a 2022 high of 4.19 percent on Feb. 25, rates for 30-year fixed-rate dipped below 4 percent on March 1. They’ve been trending upward since then, hitting 4.18 percent Tuesday, Optimal Blue’s rate lock data shows.
During the week ending March 4, demand for purchase loans by would-be homebuyers jumped by a seasonally adjusted 9 percent from the week before, according to the Mortgage Bankers Association’s Weekly Mortgage Application Survey. Compared to a year ago, however, demand for purchase loans was down 7 percent.
The MBA reported average rates for the following types of loans last week:
- For 30-year fixed-rate conforming mortgages (loan balances of $647,200 or less) rates averaged 4.09 percent, down from 4.15 percent the week before. With points remaining unchanged at 0.44 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans, the effective rate also decreased.
- Rates for 30-year fixed-rate jumbo mortgages (loan balances greater than $647,200) averaged 3.79 percent, down from 3.88 percent the week before. With points decreasing to 0.39 from 0.40 (including the origination fee) for 80 percent LTV loans, the effective rate also decreased.
- For 30-year fixed-rate FHA mortgages, rates averaged 4.12 percent, down from 4.15 percent the week before. With points decreasing to 0.73 from 0.74 (including the origination fee) for 80 percent LTV loans, the effective rate decreased.
- Rates for 15-year fixed-rate mortgages, popular with homeowners who are refinancing, averaged 3.39 percent, down from 3.47 percent the week before. With points decreasing to 0.46 from 0.47 (including the origination fee) for 80 percent LTV loans, the effective rate also decreased.
- For 5/1 adjustable-rate mortgages (ARMs), rates averaged 3.38 percent, down from 3.44 percent the week before. With points decreasing to 0.28 from 0.35 (including the origination fee) for 80 percent LTV loans, the effective rate decreased.
Call us at (480)205 2234 to get the best possible rates and mortgage options for your needs.
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