According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly down last week, with decreases seen for 30-year fixed-rate mortgages with jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Rates for 30-year mortgages with conforming loan balances rose slightly from the week before. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says mortgage rates are being affected by coronavirus concerns. “The 10-year treasury yield dropped sharply last week, in part due to investors becoming more concerned about the spread of COVID variants and their impact on global economic growth,” Kan said. “There were mixed changes in mortgage rates as a result, with the 30-year fixed rate increasing slightly … after two weeks of declines.” Demand for mortgage applications was down week-over-week. Refinance activity fell 3 percent and the Purchase Index was down 6 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
