Mortgage applications increased last week. More buyers chose 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 moved down 6.47 percent. Overall, the 30-year loan average reached 6.6 percent.
A new federal housing bill might support smaller loans and prefab homes. Experts say adjustable loans now carry more risk. That matches their shrinking share. Most buyers seem to prefer stable fixed loans as new borrowing options expand.