US Mortgage Rates Jump to Highest Levels in Almost 2 Years

Source: Mortgage Bankers Association

The interest rate on home loans increased for a fourth consecutive week last week, with residential real estate borrowing costs being at the highest level in almost two years. DXY down -0.15%, EUR USD up +0.17%

• The Mortgage Bankers Association stated its weekly measure of the average contract rate on a 30-year, fixed-rate mortgage rose to 3.64% in the week ended Jan.14 from 3.52% a week earlier.
• Home financing costs have increased significantly, with MBA’s 30-year contract rate increasing from 3.27% in mid-December.
• The increased rate is hampering application volumes for mortgage refinancing but appears to boost applications for home-purchase loans, which recorded the largest increase in six months last week.
• Overall loan application volumes increased 2.3% last week after a 7.9% increase in loans to purchase a home as refinancing applications fell 3.1% to their lowest level in over two years.