U.S. mortgage activity drops in week

WASHINGTON, May 15 (UPI) -- U.S. mortgage activity fell last week as long-term interest rates were mostly higher, the Mortgage Bankers Association said Wednesday.

The association said mortgage activity fell 7.3 percent in the week while refinancing activity dropped 8 percent in the week ending Friday.

Interest rates for 30-year, fixed-rate conforming mortgages increased from 3.59 percent to 3.67 percent during the week. Points for 30-year conforming loans rose from 0.33 to 0.41.

The average interest rate for 30-year contracts on jumbo loans -- larger than $417,500 -- rose from 3.79 percent to 3.87 percent. Points for 30-year jumbo loans rose from 0.2 to 0.25.

Interest rates for 15-year, fixed-rate mortgages rose from 2.81 percent to 2.88 percent, with points rising from 0.29 to 0.31.

The average rate for 30-year loans backed by the Federal Housing Administration rose from 3.35 percent to 3.43 percent with points dropping from 0.57 to 0.16.

The average rate for short-term, adjustable-rate mortgages increased in the week from 2.53 percent to 2.55 percent. Points for short-term adjustable-rate loans rose from from 0.15 to 0.23, the MBA said.