WASHINGTON, Aug. 25 (UPI) -- The Mortgage Bankers Association said Wednesday U.S. mortgage activity increased in the week ending Aug. 20, as interest rates continued to decline.
The MBA's Market Composite Index rose 4.9 percent in the week, while the Refinancing Index rose 5.7 percent, the trade group said.
During the week, the average interest rate for 30-year, fixed-rate mortgages declined from 4.6 percent to 4.55 percent with points falling from 0.92 to 0.89.
Rates for the average 15-year, fixed-rate mortgage fell from 3.99 percent to 3.91 percent, with points for 15-year contracts rising from 1.05 to 1.64.
Rates have continued to decline past the point of expectations. In March the U.S. Federal Reserved ended a program to purchase $1.25 trillion in mortgage-backed securities, which was attributed with keeping rates low.
But rates have continued to fall. This week interest rates for both 30-year and 15-year mortgages were at the lowest level since the MBA began tracking the data. The jump in points for 15-year contracts, however, erased any gains the falling rate gave borrowers, the MBA said.
For one-year, adjustable-rate mortgages, the average interest rate dropped from 6.9 percent to 6.84 percent with points climbing from 0.21 to 0.22, the MBA said.
