According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved slightly lower last week, with declines seen for 30-year fixed-rate loans with both conforming and jumbo balances. Loans backed by the Federal Housing Administration and 15-year fixed-rate loans were flat week-over-week. But while rates were stable, it wasn’t enough to drive demand, which fell 2 percent due to a drop in refinance activity. Joel Kan, MBA’s vice president and chief economist, says home buyer activity rose despite the flat week. “Purchase applications saw the strongest weekly pace in almost two months and were 7 percent higher than a year ago,” Kan said. “Last week’s purchase activity was driven primarily by a 6 percent increase in FHA applications, as the combination of loosening housing inventory and slowly declining mortgage rates have presented this segment of buyers with more opportunities.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)
