Mortgage Rates Rise Slightly, While Applications Slip

Mortgage Weekly Update

Mortgage rates ticked up slightly this week, sending applications both to purchase a home and refinance one downward.

According to Freddie Mac, the average rate on 30-year, fixed-rate loans was 2.99% this week, up from 2.95% the week prior. As a result of the uptick, the Mortgage Bankers Association reported a 3% decrease in purchase applications and a 5% decrease in refinancing.

“Mortgage applications decreased for the second week in a row, with the overall index reaching its lowest level since February 2020,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Tight housing inventory, obstacles to a faster rate of new construction, and rapidly rising home prices continue to hold back purchase activity.”

Homebuyer demand for government-backed loans — including USDA, VA, and FHA mortgages — also declined for the week.

“The government purchase index declined to its lowest level in over a year and has now decreased year-over-year for five straight weeks,” Kan said. “Purchase applications were down almost 2% from a year ago, but that was compared to the week of Memorial Day 2020.”  

More in mortgage & housing news

  • The number of mortgage loans in forbearance fell to 4.19% for the week, according to MBA. About 2.1 million homeowners are still on a mortgage forbearance plan.
  • Fannie Mae and Freddie Mac have extended mortgage forbearance options for multifamily borrowers through September 30. They were previously set to expire this month.
  • New data from shows that homes are selling over a month faster than this time last year. Sale time declined the most in Pittsburgh, Detroit, and Rochester, N.Y. Redfin data shows that 57% of homes sold are under contract within two weeks, and 44% are under contract within one.
  • Over half of homes listed are selling for above listing price, according to Redfin. That’s up from just one in four a year ago.

This week in mortgage rates

Mortgage rates increased or held steady on all loan products this week.

Here’s how rates looked for each loan type:

Make sure to check back here next week for the latest mortgage news.

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By Aly Yale / June 4th, 2021 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at or on Twitter at @AlyJwriter.