FX.co ★ US Mortgage Rate Edge Higher: MBA

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $806,500) in the United States stood at 6.33% for the week ending December 5th, showing only a slight increase from the previous week's 6.32%, which marked the lowest rate observed in four weeks, as reported by the Mortgage Bankers Association (MBA). Mortgage application activity rose by 4.8%, the largest increase in six weeks, primarily driven by a substantial 14.3% rise in refinancing applications, more than offsetting a 2.4% decrease in applications for home purchases. "While conventional purchase applications declined during the week, there was a notable 5% increase in FHA purchase applications, signaling that prospective homebuyers continue to opt for loans requiring lower down payments," commented Joel Kan, an economist with the MBA. In addition, the interest rate on FHA 30-year fixed-rate loans decreased to 6.08%, the lowest figure recorded since September 2024.