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Mortgage rates decrease in first week of April
30-year fixed-rate mortgages backed by FHA drop to 3.87%

by Jeb Bing

Mortgage applications decreased 2.4% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending April 6.

The MBA also reported that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.10% from 4.16%, with points remaining unchanged at 0.43 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. This is the lowest 30-year fixed rate since March 9, 2012. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.43% from 4.46%, with points decreasing to 0.36 from 0.49 (including the origination fee) for 80% LTV loans. This is the lowest 30-year jumbo rate since March 9, 2012. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.87% from 3.89%, with points decreasing to 0.55 from 0.58 (including the origination fee) for 80% LTV loans. This is the lowest FHA rate since March 9, 2012. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.37% from 3.40%, with points decreasing to 0.37 from 0.41 (including the origination fee) for 80% LTV loans. This is the lowest 15-year fixed rate since March 9, 2012. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.89% from 2.93%, with points increasing to 0.38 from 0.35 (including the origination fee) for 80% LTV loans. This is the lowest 5/1 ARM rate since March 9, 2012. The effective rate decreased from last week.