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Mortgage Rates Tick Up on Wednesday; Rates Hit Highest Levels Since June

By Alex Dumortier, CFA – Nov 2, 2016 at 1:20PM

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Mortgage rates ticked up on Wednesday; the weekly Mortgage Bankers Association survey shows rates rising to their highest levels since June.


Mortgage rates rose on Wednesday: The average 30-year mortgage rate is 3.57%, which equates to a $452.96 monthly payment per $100,000 borrowed. A month ago, the equivalent payment would have been lower by $12.80.

If you were to opt for a shorter term, the average 15-year mortgage rate is 2.87%, which equates to a $684.35 monthly payment per $100,000 borrowed. A month ago, the equivalent payment would have been lower by $11.90.

Rate (national average)


1 Month Ago

30-yr fixed jumbo



30-yr fixed



15-yr fixed



30-yr fixed refi



15-yr fixed refi



5/1 ARM



5/1 ARM refi



ARM = Adjustable-rate mortgage. Data source: Bloomberg.

Mortgage applications fell last week; rates at highest levels since June

The Mortgage Bankers Association's Weekly Applications Survey, released on Wednesday morning, noted mortgage applications had fallen 1.2% during the week ending Oct. 28. The Market Composite Index, which tracks mortgage application volume, fell to its lowest level since May.

Other indicators are lower, too: The Purchase Index fell 0.4%, following a brutal 7% decline the previous week, while the Refinance Index was down 2%. Nevertheless, the Purchase Index is 9% ahead of its year-ago level. The refinance share of mortgage activity was 62.7%, unchanged on the previous week, and adjustable-rate mortgages were just 4.4% of total applications.

For conforming loans (balances of $417,000 or less), the average contract interest rate on a 30-year fixed-rate mortgage rose to 3.75%, its highest level since June. Points, including the origination fee, decreased to 0.32% for mortgages with 80% loan-to-value ratio. The effective rate increased from the previous week.

The average rate for a 15-year fixed-rate mortgages also reached its highest level since June 2016, at 3.04% percent, with points increasing to 0.36%.

The millennials are coming!

On Monday, this column highlighted that the proportion of sales to first-time buyers rose to 35% in 2016, following three straight years of declines. Yesterday, one of my favorite Twitter pundits, @groditi (Guillermo Roditi Dominguez, managing director of New River Investments), noted wryly:

42% of freddie mac purchase origination was for 1st time home buyers, highest share in 10y. "millenials won't buy homes," they said...

— Guillermo :( (@groditi) November 2, 2016

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