According to the Mortgage Bankers Association’s Weekly Applications Survey, average rates for30-year fixed-rate mortgages with conforming loan balances fell to a new low last week. Rates for 15-year fixed-rate loans and loans backed by the Federal Housing Administration were also down. The declines sparked demand for loan applications, which rose 3.9 percent from the week before. Joel Kan, MBA’s associate vice president of industry and economic forecasting, says buyer demand remains solid, despite low inventory and rising home prices. “Amidst strong competition for a limited supply of homes for sale, as well as rapidly increasing home prices, purchase applications increased for both conventional and government borrowers,” Kan said. “Furthermore, purchase activity has surpassed year-ago levels for over six months.” In fact, the MBA’s Purchase Index – which measures demand for loans to buy homes – is now 19 percent higher than the same week one year ago. Refinance demand is 79 percent higher than last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
