Fixed rate mortgages declined again last week and a decrease in fees and points helped to offset slight increases in some adjustable rate products.
Freddie Mac reported that the 30-year fixed rate mortgage dropped from 5.65 percent to 5.62 percent and the 15-year inched down to 5.20 percent from 5.21 percent the previous week. Fees and points for both products averaged 0.6, unchanged from the week ended May 26.
Both of the adjustable rate projects tracked by Freddie bumped up a bit. The 5/1 ARM increased .03 percent to 5.10 percent and the 1-year ARM was at 4.26 percent from 4.21 the previous week. Fees and points, however, dropped to 0.5 from 0.7 for the 5-year hybrid and were down 0.1 to 0.6 for the 1-year ARM.
The Mortgage Bankers Association (MBA) survey results were somewhat similar. 30-year fixed rate mortgages were down to 5.55 percent from 5.61 percent. Both the 15-year fixed and 1-year ARM were steady at 5.13 percent and 4.09 percent respectively.
The Market Composite Index, a measure of mortgage loan application volume, was up 6.5 percent on a seasonally adjusted basis (including an adjustment for the Memorial Day holiday and up a whopping 31.5 percent compared with the same week in 2004.
The refinancing share of total mortgage activity rose again to 42.9 percent, the highest since March while adjustable rate mortgages slipped to 31.7 percent of all applications from 33.3 percent the previous week.