According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased to their highest level in two months last week. Rates were up across most 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 increase led to slower application activity, with refinance demand down 20 percent week-over-week and purchase demand down 7 percent. Joel Kan, MBA’s vice president and deputy chief economist, says demand has fallen but remains better than last year. “Similar to the previous week, economic uncertainty and rate volatility impacted prospective home buyers as we saw a 7 percent decline in purchase applications,” Kan said. “Both conventional and government purchase activity fell relative to the week before, but the overall level of purchase applications was still 6 percent higher than a year ago.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
