Mortgage activity declines with interest rates climbing

WASHINGTON, July 10 (UPI) -- Mortgage activity declined last week as interest rates reached levels unseen since July 2011, the Mortgage Bankers Association said Wednesday.

Mortgage activity involving new loans and refinancing activity dropped 4 percent in the week, the MBA said.

The organization said average interest rates for standard 30-year, fixed-rate conforming loans increased from 4.58 percent to 4.68 percent. Average points for 30-year, fixed rate loans rose from 0.43 to 0.46, the MBA said.

For loans of more than $417,500, called jumbo loans, rates rose from 4.68 percent to 4.86 percent. Points for long-term jumbo loans fell from 0.38 to 0.37.

Average rates for 30-year, fixed rate contracts backed by the Federal Housing Administration rose from 4.27 percent to 4.37 percent with points decreasing from 0.44 to 0.39.

The average interest rate for 15-year, fixed-rate mortgages increased from 3.64 percent to 3.76 percent. Points declined from 0.44 to 0.41 in the week.

For short-term, adjustable-rate contracts, interest rates rose from 3.33 percent to 3.4 percent with points rising from 0.31 to 0.54.

The average interest rates for 30-year fixed rate conforming and jumbo loans and those for 15-year fixed-rate loans were all at highs unseen since July 2011. For 30-year loans backed by the FHA, interest rates are higher than they have been since September 2011.

Average rates for short-term loans with adjustable terms are at a high not seen since May 2011, the MBA said.