According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell for the third consecutive week last week. 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, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says falling rates haven’t yet helped demand for home purchase loans, which remain lower than last year. “Purchase activity continues to lag despite this recent decline in rates, down 11 percent from a year ago, as potential buyers still face limited for-sale inventory and high list prices,” Kan said. Overall, though, mortgage demand was up nearly 2 percent week-over-week due to increases in refinance activity. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
