Mortgage Rates Rise Amid Middle East Conflict; Housing Applications Decline
U.S. mortgage rates continue climbing due to the ongoing Middle East conflict, with 30-year mortgages averaging 6.328% and applications falling 4.4% for the week ending May 1. Despite fewer applications, average loan sizes reached historic highs.
Current Mortgage Rates
The current average 30-year mortgage rate is 6.328%. That's down from 6.339% on the last day's report. The current average rate on a 30-year jumbo loan is 6.551%. That's up from 6.506% on the last day's report.
Application Trends
Overall, applications decreased 4.4% for the week ending May 1 compared to a week earlier. Refis were down 5% while purchase applications were down 4%, per the MBA.
Geopolitical Impact on Rates
"The ongoing conflict in the Middle East continues to push rates higher," Joel Kan, MBA's vice president and deputy chief economist, observed in a news release.
Loan Size Records
"Despite purchase applications declining over the week, overall activity remains higher compared to last year's pace," Kan added. "Additionally, the average loan size on a purchase application increased to $467,300, the highest in the survey's history dating back to 1990."