WASHINGTON, July 3 (UPI) -- Mortgage activity declined sharply last week as interest rates hit a two-year peak, the Mortgage Bankers Association said Wednesday.
Mortgage activity involving new loans dropped 11.7 percent and refinancing fell 16 percent, the MBA said.
The organization said average interest rates for standard 30-year, fixed-rate conforming loans increased from 4.46 percent to 4.58 percent. Average points for 30-year, fixed rate loans rose from 0.35 to 0.43, the MBA said.
For loans of more than $417,500, called jumbo loans, rates rose from 4.52 percent to 4.68 percent, the highest rates since October 2011. Points for long-term jumbo loans rose from 0.28 to 0.38.
Average rates for 30-year, fixed rate contracts backed by the Federal Housing Administration rose from 4.2 percent to 4.27 percent, the highest rate since August 2011, with points increasing from 0.4 to 0.44.
The average interest rate for 15-year fixed-rate mortgages increased from 3.55 percent to 3.64 percent, the highest rate since July 2011. Points increased to 0.44 from 0.43 in the week.
For short-term, adjustable-rate contracts, interest rates rose from 3.06 percent to 3.33 percent with points averaging 0.31, down from 0.39.
In its weekly survey taken Monday through Wednesday each week, the Federal Home Loan Mortgage Corp., known as Freddie Mac, posted lower numbers. Interest rates for 30-year fixed rate loans averaged 4.29 percent in the week, while 15-year loans with fixed rates averaged 3.39 percent, Freddie Mac said.
Five-year loans averaged 3.1 percent in the week, while one-year loans averaged 2.66 percent, the mortgage broker said.