Mortgage Resource Center data show daily rates moved higher across major loan categories, with the average 30-year conforming loan at 6.608% and the 15-year at 5.800% ahead of the Fed's late-July meeting.
U.S. mortgage demand softened last week as borrowing costs stayed near the upper end of a tight recent range, while daily rate data showed further increases across major loan categories. Total mortgage application volume fell 2.2% from the prior week on a seasonally adjusted basis, with an extra adjustment for the Independence Day holiday, according to the Mortgage Bankers Association. Purchase applications declined 1% and refinances fell 4%, while adjustable-rate mortgages rose to 7.8% of total applications. Separate Mortgage Resource Center data reviewed July 9 showed the average 30-year fixed-rate conforming mortgage at 6.608%, up from 6.540% the prior day and 6.579% a week earlier, while the average 15-year fixed conforming loan rose to 5.800% from 5.734% the prior day and 5.726% a week earlier. Average rates also increased for 30-year jumbo, FHA, VA and USDA loans. On a $300,000 loan, a 30-year mortgage at 6.608% would result in about $390,323.47 in lifetime interest, versus roughly $149,868.57 for a 15-year loan at 5.800%. The Federal Reserve left the federal funds rate unchanged at 3.50% to 3.75% at its June 16-17 meeting, with its next meeting scheduled for July 28-29. MBA's Mike Fratantoni said application volume was little changed during the week of the nation's 250th Independence Day celebration, and analysts continue to watch whether monetary policy, inflation and loan demand can push mortgage rates lower later this year.