Applications for purchase mortgages surged last week as mortgage rates hit their lowest levels in two months, with rates continuing to trend down this week as bond market investors digest data that shows inflation cooling.

Requests for purchase loans were up by a seasonally adjusted 4 percent last week compared to the week before, but down 20 percent from the same time a year ago, according to a weekly survey of lenders by the Mortgage Bankers Association.

Applications to refinance were up 2 percent from the week before, but down 4 percent from a year ago. For the week ending Nov. 17, the MBA reported average rates for the following types of loans:

• For 30-year fixed-rate conforming mortgages (loan balances of $726,200 or less), rates averaged 7.41 percent, down from 7.61 percent the week before. With points decreasing to 0.62 from 0.67 (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 $726,200) averaged 7.51 percent, down from 7.65 percent the week before. With points decreasing to 0.62 from 0.67 (including the origination fee) for 80 percent LTV loans, the effective rate also decreased.
• For 30-year fixed-rate FHA mortgages, rates averaged 7.19 percent, down from 7.36 percent the week before. With points decreasing to 0.79 from 0.85 (including the origination fee) for 80 percent LTV loans, the effective rate also decreased.
• Rates for 15-year fixed-rate mortgages, popular with homeowners who are refinancing, averaged 6.89 percent, down from 6.94 percent the week before. With points decreasing to 0.76 from 1.00 (including the origination fee) for 80 percent LTV loans, the effective rate also decreased.
• For 5/1 adjustable-rate mortgages (ARMs), rates averaged 6.76 percent, up from 6.65 percent the week before. With points increasing to 0.82 from 0.72 (including the origination fee) for 80 percent LTV loans, the effective rate also increased.

Requests for ARM loans fell to 8.3 percent of total applications, while applications to refinance accounted for 32.4 percent of loan requests.

Call us at (480)205 2234 to get more information on current mortgage rates.