WASHINGTON–Mortgage rates declined slightly last week following increases over two consecutive weeks, with new data showing refinancings were a significant part of mortgage activity.
According to Freddie Mac’s Primary Mortgage Market Survey, the average rate on 30-year, fixed-rate mortgages dropped to 3.88% from 3.91% one week earlier (and 3.52% one year earlier).
The average rate on 15-year, fixed-rate mortgages declined to 3.19% from 3.21% one week earlier (the rate was 2.70% a year ago).
One rate average did increase: the average on the five-year ARM ticked up one basis point to 3.17% (it was 2.85% one year ago).
Meanwhile, Ellie Mae’s September Origination Insight Report shows the percentage of refinances increased to 38% of total loans. The data is based on about 80% of all mortgage apps.
Ellie Mae said its Origination Insight Report is a “strong proxy of the underwriting standards employed by lenders across the country.”
Overall, reported Ellie Mae, the percentage breakdown of all closed loans shifted as conventional loans increased to 66%, Federal Housing Administration (FHA) loans decreased to 20% and VA loans held steady at 10%.