According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down for 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. It was the fourth consecutive week mortgage rates improved. Joel Kan, MBA’s vice president and deputy chief economist, says home buyers are regaining purchasing power. “Purchase activity is expected to pick up as the spring home buying season gets underway, bolstered by lower rates and moderating home-price growth,” Kan said. “Both trends will help some buyers regain purchasing power.” But while mortgage rates have fallen almost 40 basis points over the past month, demand for loans to buy homes remained slow last week, falling 10 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)
