WASHINGTON–Mortgage rates last week rose for the second consecutive week, marking the only two weekly increases so far in 2016, according to Freddie Mac.
The 30-year fixed-rate mortgage averaged 3.68% in the March 10 week, up from 3.64% the prior week. The 15-year fixed-rate mortgage averaged 2.96%, up two basis points compared to the prior week. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.92%, up from 2.84% a week ago.
In a statement, Freddie Mac said rates are substantially below levels at the end of 2015, “favorable” for the spring buying season.
Meanwhile, new home purchase mortgage application volume increased in February, as mild weather and low rates encouraged a busy start to the spring buying season, according to the Mortgage Bankers Association.
The MBA said applications submitted to the mortgage origination affiliates of homebuilders rose 24% on an unadjusted basis compared to January.
New home sales for single-family units totaled 544,000 units in February, a 12% rise compared to a year ago. Average loan size rose 0.8% to $328,370 on a monthly basis.
Conventional loans made up 67.7% of loan applications. FHA loans were 18.7%, VA loans were 12.8% and USDA loans were 0.8%, the MBA said in its monthly Builder Application Survey.