Interest rates for conforming mortgages have fallen to their lowest level in over a year and a half, according to the Mortgage Bankers Association.
The Washington-based trade group said in a press release Wednesday that rates for 30-year fixed-rate loans dropped to 4.08%, or seven basis points lower than a week earlier.
For the first time in slightly over a year, rates for jumbo loans, or loans with balances above $417,000, are now higher than conforming mortgages. Jumbo rates increased one basis point, to 4.11%.
Meanwhile, the average interest rate for 30-year loans insured by the Federal Housing Administration fell 5 basis points, to 3.85%. Rates for adjustable-rate loans climbed 1 basis point, to 3.07%.
Mortgage applications fell over the Thanksgiving holiday, declining 7.3% on a seasonally adjusted from the previous week. The MBA’s Market Composite Index, which tracks application volume, included an adjustment to account for the shortened holiday week.
Refinance application volume was down 13% from last week on an unadjusted basis, while seasonally adjusted purchase volume increased by 3%.