According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from the week before. Rates were down across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 5/1 ARMs. Rates for 15-year fixed-rate loans were unchanged week-over-week. With rates down for the third straight week, mortgage application demand moved 5.4 percent higher. The improvement was mostly due to a spike in refinance demand, but Joel Kan, MBA’s vice president and deputy chief economist, says home buyers also remain active. “Purchase applications remained relatively strong and have shown annual gains in all but one week over the past three months,” Kan said. “In addition to lower rates, purchase activity continues to be supported by sustained housing demand and inventory that continues to grow in many markets.” Demand for loans to buy homes is now 4 percent higher than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
