According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up and down last week. Rates for 30-year fixed-rate loans with conforming balances were unchanged from one week earlier, while rates for loans backed by the Federal Housing Administration and 15-year fixed-rate loans fell. Rates for jumbo loans and 5/1 ARMs both increased. With rates relatively steady, demand for loans to buy homes was also flat, though refinance activity fell 7 percent. Joel Kan, MBA’s vice president and deputy chief economist, says there’s reason for optimism. “Purchase activity decreased slightly, but applications for FHA purchase loans were a bright spot, increasing by 2 percent,” Kan said. “New and existing-home sales ended 2024 on a strong note, and if mortgage rates continue to stabilize and for-sale inventory loosens, we expect a gradual pick up in purchase activity in the coming months.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
