What Will Happen with Massachusetts Mortgage Rates this Week?
Mortgage rates retreat from 3% threshold
Mortgage rates increased last week as Boston condo refinancing applications fell and purchase applications held steady.
The Mortgage Bankers Association’s weekly survey of 75 percent of the residential mortgage market saw the average 30-year fixed-rate mortgage increase to 3.13 percent, up seven basis points from 3.06 percent the previous week. Jumbo rates also increased by one basis point to 3.41 percent.
MBA’s refinance index dropped by an adjusted 5 percent last week, though it was 38 percent higher than a year earlier. Joel Kan, MBA’s head of forecasting, attributed the drop in refinancings to the rising rates.
Last week, Freddie Mac and Fannie Mae announced they would charge lenders a new 0.50 percent fee on refinancing loans starting in September. According to MBA, that would tack on another $1,400 for the average consumer looking to replace existing debt.
On the purchase side, Kan pointed to the recent release of July housing starts data, which saw a 22.6 percent month-over-month increase in the number of homes under construction, as a “bright spot” that signals the industry’s response to “the strong demand for buying a home.”
MBA’s index tracking applications for all home loans fell by an adjusted 3.3 percent last week, compared to the first week of August
- Boston Back Bay condos for sale and rent
- Beacon Hill Boston condos for sale and rent
- Charlestown Boston condos for sale and rent
- Charlestown Navy Yard sale and rent
- Dorchester Heights Boston condos for sale and rent
- Fenway Boston condos for sale and rent
- Jamaica Plain Boston condos for sale and rent
- Leather District Boston condos for sale and rent
- Midtown Downtown condos for sale and rent
- Seaport District condos for sale and rent
- South Boston condos for sale and rent
- South End Boston condos for sale and rent
- Waterfront condos for sale and rent
For more information please contact one of our on-call agents at 617-595-3712