Mortgage applications increased last week. More buyers opted for fixed-rate loans over adjustable ones. Loans with rates that change stayed low and held 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 could help smaller loans and prefab homes. Experts note adjustable loans now carry more risk. That matches their shrinking share. Most buyers seem to prefer predictable terms as new borrowing choices grow.