According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says rates are now lower than they’ve been since June. “With the positive news about the drop in inflation, and the FOMC projections proclaiming a pivot toward rate cuts, the 30-year fixed mortgage rate reached its lowest level since June 2023,” Fratantoni said. But while rates continue to fall, the most recent decline didn’t spur much activity from borrowers. In fact, overall demand for mortgage applications was down 1.5 percent from the week before, with the number of borrowers seeking loans to buy homes down 1 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
