Mortgage applications increased last week. More buyers opted for fixed-rate loans over adjustable ones. Loans with adjustable terms remained minimal and made up the smallest share since January. The average for 30-year fixed loans fell to 6.47 percent. Overall, the 30-year loan average settled at 6.6 percent.
A new federal housing bill might support smaller loans and prefab homes. Experts note adjustable loans now carry more risk. That fits with their shrinking share. Most buyers clearly prefer predictable terms as new borrowing choices grow.