According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up across all 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 increases coincided with falling demand for mortgage loan applications. The refinance index was down 4 percent week-over-week and the purchase index was down 1 percent. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says demand from home buyers was mixed last week. “Purchase applications also saw a mixed result, with conventional purchase applications down and government purchases up,” Kan said. “Government purchase loans, such as FHA loans, are typically popular with first-time buyers.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
