Mortgage activity flat with rates low

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WASHINGTON, Oct. 10 (UPI) -- Mortgage activity fell slightly last week, as long term interest rates set or remain near historic lows, the Mortgage Bankers Association said Wednesday.

In the week that ended Friday, U.S. mortgage activity slipped 1.4 percent and refinancing fell 2 percent, the MBA said.

Mortgage activity slowed after a week in which loan applications swelled at financial firms, due to historic lows in interest rates. This week, rates remained low but application activity tailed off, the MBA said.

In the week that ended Friday, interest rates for 30-year, fixed-rate conforming mortgages rose from 3.53 percent to 3.56 percent with points rising from 0.35 to 0.39.

The average interest rate for 30-year contracts on jumbo loans -- loans larger than $417,500 -- fell from 3.82 percent to 3.74 percent, a low for the history of the survey. Points for 30-year jumbo loans rose from 0.32 to 0.4.

Loans for 15-year, fixed-rate mortgages dropped from 2.9 percent to 2.88 percent -- another record low. Points for 15-year, fixed rate contracts rose from 0.27 to 0.4.

Average rates also for 30-year loans backed by the Federal Housing Administration hit an historic low of 3.34 percent, while average rates for short-term adjustable rate mortgages rose from 2.59 percent to 2.6 percent in the week, the MBA said.