A new report shows that mortgage rates have hit their highest level in 2015.
According to the latest weekly survey from the Mortgage Bankers Association (MBA), interest rates on the 30 year fixed rate mortgage jumped seven basis points last week, going from 4.19 percent to 4.26 percent. The new average is the highest level for that category since this past October.
As one MBA spokesperson said, recent domestic and global economic factors contributed to the increase.
"Rates drifted up further last week due to stronger U.S. economic data, even with the worries about a potential default of Greek debt this week," said Mike Fratantoni, MBA chief economist, in a statement.
Rates for the 15 year fixed rate mortgage were also the highest its been since that same month {which month?} last year, up to 3.44 percent from 3.38 percent. The average rate for the five and one year adjustable rate mortgages increased to 3.09 percent, up from 3.04 percent. The rates for the 30 year fixed rate mortgage for values greater than $417,000 went from 4.14 percent to 4.21 percent, also a nine-month high.
The high rates had a corresponding effect on mortgage applications, as those were down week over week.
MBA reported that mortgage loan application volume dropped 4.7 percent from the previous week on a seasonally adjusted basis. Applications to refinance also decreased, dropping 5 percent to its lowest level since December of 2014.
Applications to refinance represented 48.9 percent of the total application volume, down just barely from 49 percent last week.
The MBA's index for purchases fell 4 percent from the previous week on a seasonally adjusted basis, but was still up 14 percent from the same week last year.
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