Mortgage Rates Today: 30-Year Falls to Lowest Since 2022 as Applications Inch Up
Mortgage rates today dropped to the lowest level since September 2022 even as homebuyers remained largely on the sidelines. Home loan demand increased for a second straight week, with mortgage applications rising 0. 4% for the week ending Feb. 20.
Mortgage Rates Today snapshot
The average rate on a 30-year fixed home loan fell to 6. 01% for the week ending Feb. 19, as Freddie Mac, down from 6. 09% the week prior. Mortgage interest rates were described as having declined to their lowest level since September 2022.
Applications and index moves
The Market Composite Index, a measure of mortgage loan application volume, increased 0. 4% on a seasonally adjusted basis from one week earlier and rose 2% on an unadjusted basis compared with the previous week. The Refinance Index increased 4% from the previous week and was 150% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 5% from one week earlier; the unadjusted Purchase Index decreased 1% compared with the previous week and was 12% higher than the same week one year ago.
Refinance and share details
The refinance share of mortgage activity increased to 58. 6% of total applications from 57. 4% the week prior. The adjustable-rate mortgage share of activity remained unchanged at 8. 2% of total applications. The Federal Housing Administration share of total applications decreased to 16. 1% from 18. 4% the week prior. The Veterans Affairs share of total applications increased to 18. 7% from 16. 5% the week prior. The USDA share of total applications remained unchanged at 0. 4% from the week prior.
What economists are saying
Joel Kan, MBA’s vice president and deputy chief economist, said mortgage rates followed Treasury yields lower last week, with the 30-year fixed rate declining to 6. 09 percent – its lowest level since September 2022. He said the decrease in rates was enough to drive a 5 percent increase in conventional refinance applications and a 26 percent increase in VA refinances. Kan added that purchase applications were down over the week but were 12 percent higher than a year ago, and that the combination of lower rates and improving affordability conditions continue to support stronger demand than last year.
Kan also noted that the ARM share stayed above 8 percent, as ARM rates remained more than 80 basis points below conforming fixed rates, and that this is giving payment-sensitive borrowers or those seeking larger loans an incentive to choose this product offering.
Rate breakdown by loan type
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($832, 750 or less) decreased to 6. 09% from 6. 17%, with points decreasing to 0. 53 from 0. 56 (including the origination fee) for 80% loan-to-value ratio loans; the effective rate decreased from last week. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $832, 750) the average contract interest rate decreased to 6. 20% from 6. 21%, with points increasing to 0. 42 from 0. 27 (including the origination fee) for 80% LTV loans; the effective rate increased from last week. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 5. 97% from 5. 99%, with points remaining unchanged at 0. 65 (including the origination fee) for 80% LTV loans; the effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 5. 48% from 5. 50%, with points decreasing to 0. 70 from 0. 73 (including the origination fee) for 80% LTV loans; the effective rate decreased from last week. The average contract interest rate for 5/1 ARMs decreased to 5. 23% from 5. 29%, with points decreasing to 0. 41 from 0. 62 (including the or
Homebuilders and investor reaction
Investors will be eyeing homebuilders as mortgage rates fell to below 6% this week. Top Quant ranked homebuilders as mortgage rates fell to below 6% (XLRE: NYSEARCA), and a list of homebuilders was presented quant ratings.
Despite the drop in rates and modest increases in application volume, the coverage indicates homebuyers are largely remaining on the sidelines even as refinancing activity strengthens and some loan-type rates improve.
Unclear in the provided context on additional forward-looking commentary or specific builder rankings beyond those summarized above.
