U.S. Mortgage Applications Up As Rates Drop Below 5 Percent

The Mortgage Bankers Association reports borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.97 percent, down 0.07 percentage point from the previous week. The rate remained above the all-time low of 4.61 percent set in the week ended March 27. The survey has been conducted weekly since 1990. Nevertheless, interest rates were well below the year-ago level of 6.47 percent.

Fixed 15-year mortgage rates averaged 4.33 percent, down from 4.53 percent the previous week. Rates on one-year ARMs increased to 6.83 percent from 6.79 percent.