According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from the week before. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, 15-year fixed-rate loans, and 5/1 ARMs. Interest rates for loans backed by the Federal Housing Administration saw a small increase. Joel Kan, MBA’s vice president and deputy chief economist, says demand for loans to buy homes rose as a result. “Home-purchase applications increased for the second straight week but remained almost 40 percent below last year’s pace,” Kan said. “While lower rates should buoy housing demand, the financial market volatility may cause buyers to pause their decisions.” Market concerns over recent bank closures were partly responsible for rates falling last week. Whether it’ll slow buyer demand remains to be seen, but last week buyers pushed demand for home purchase loans up 7 percent from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
