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 “Renewed concerns about the state of thernglobal economy, particularly in Europe, led to a flight to quality to USrnTreasury securities, thereby pushing interest rates down in the US,” said MikernFratantoni, MBA’s Chief Economist. “Rates on conforming loans hit 6 month lowsrnand jumbo rates hit 12 month lows. Refinance volume picked up somewhat as arnresult, but it still remains more than 65 percent below last year’s pace.rnPurchase volume continues to run more than 10 percent below last year’srnpace.” </p

Thernaverage contract interest rate for a conforming 30-year fixed rate mortgagern(FRM) with a principal balance of $417,000 or less decreased to 4.33 percentrnfrom 4.39 percent with points easing to 0.20 from 0.22.  This was the lowest conforming 30 year FRMrnsince last November.  The effective raternfor this and all other rates quoted also decreased.</p

Jumborn30-year FRM with balances above $417,000 had an average rate of 4.24 percent, 5rnbasis points lower than the previous week and the lowest rate since May 2013.  Points decreased to 0.1 from 0.16.</p

Rates for bothrnFHA-backed 30-year FRM and for 15-year conventional mortgages fell back tornOctober levels.  FHA loans had an averagernrate of 4.06 percent with -0.39 point compared to 4.09 percent with –0.17rnpoint the previous week and the 15-year rate was 3.43 percent with 0.15 point,rndown from 3.48 percent with 0.12 point. </p

Thernaverage contract interest rate for 5/1 adjustable rate mortgages (ARMs)rndecreased to 3.14 percent from 3.17 percent, with points increasing to 0.29rnfrom 0.24.  ARMs maintained the same 8rnpercent share of applications as the previous week.</p

MBA’srnWeekly Mortgage Applications Survey has been conducted since 1990 and coversrnover 75 percent of all U.S. retail residential mortgage applications.  Respondents include mortgage bankers,rncommercial banks and thrifts. Base period and value for all indexes is Marchrn16, 1990=100 and rates are quoted for loans with an 80 percent loan-to-valuernratio.  Points include the originationrnfee.

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