According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The decline was the first after seven consecutive weeks of increases. Joel Kan, MBA’s associate vice president of economic and industry forecasting, said rates are still higher than they were at the start of the year and buyers are noticing. “Many prospective home buyers this spring are feeling the effects of higher rates and rapidly accelerating home prices,” Kan said. “Record-low inventory is pushing home-price growth at double the rate from a year ago, and even above the 10 percent growth rates seen in 2005. The housing market is in desperate need of more inventory to cool price growth and preserve affordability.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
