Mortgage rates were uneven this week as investors scurried toward bonds amid growing global economic concerns.
The movement of the 10-year Treasury bond is one of the best indicators whether mortgage rates will rise or fall. When yields go down, interest rates tend to follow.
The 15-year fixed-rate average rose to 3.26 percent with an average 0.5 point. It was 3.24 percent a week ago and 3.05 percent a year ago.
The five-year ARM average increased to 3.09 percent with an average 0.5 point. It was 3.08 percent a week ago and 2.98 percent a year ago.
“Concerns about overseas economic developments have dominated financial markets to start the year,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“U.S. Treasury bond yields fell amidst a global equity selloff and flight to safety.”
Not unexpectedly, mortgage applications dropped off significantly during the holidays, according to the latest data from the Mortgage Bankers Association.
The market composite index — a measure of total loan application volume — plummeted 27 percent from two weeks ago, the last time the MBA did its survey. The refinance sank 37 percent, while the purchase index fell 15 percent.
The refinance share of mortgage activity accounted for 55.4 percent of all applications.