Mortgage rates moved lower last week, with the 30-year fixed rate edging down slightly to 6.43 percent according to data released Wednesday by the Mortgage Bankers Association. That is the lowest level in more than a year.
Rates are dropping ahead of an expected interest rate cut by the Federal Reserve later this month. Mortgage rates are tied to that rate.
The MBA also reported that mortgage applications increased 1.6 percent from one week earlier.
Despite lower rates, refinance applications decreased slightly but are still higher than a year ago as borrowers look for relief from high rates.
The refinance share of mortgage activity decreased to 46.4 percent of total applications from 46.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.5 percent of total applications.
The FHA share of total applications decreased to 14.6 percent from 15.3 percent the week prior. The VA share of total applications increased to 16.7 percent from 15.9 percent the week prior. The USDA share of total applications remained unchanged at 0.4 percent from the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.43 percent from 6.44 percent.
The average contract interest rate for 30-year fixed-rate jumbo mortgages (greater than $766,550) decreased to 6.73 percent from 6.75 percent.
The average contract interest rate for 30-year fixed-rate FHA mortgages decreased to 6.30 percent from 6.36 percent.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.98 percent from 5.88 percent.
