The average contract rate on 30-year fixed-rate mortgages for conforming loans of $806,500 or less in the US edged down to 6.21% in the week ended January 30, from a four-week high of 6.24% in the prior week, according to the Mortgage Bankers Association. Overall mortgage applications slipped 0.3%, with purchase applications declining 2.4%, while refinance applications rose 1.2%.
“FHA purchase and refinance applications increased, helped partially by the FHA rate declining and remaining 20 basis points lower than the conforming 30-year fixed rate. Borrowers are increasingly utilizing FHA loans as affordability challenges remain, despite recent improvements,” said Joel Kan, the MBA’s vice president.
