According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week after falling for five consecutive weeks. Rates were up from the week before 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. As a result, demand for mortgage applications fell 7.7 percent, with both refinance and purchase activity decreasing from one week earlier. Joel Kan, MBA’s vice president and deputy chief economist, says rates rose in reaction to inflation concerns. “Mortgage rates increased across the board last week pushed higher by market expectations that inflation will persist, thus requiring the Federal Reserve to keep monetary policy restrictive for a longer time,” Kan said. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)
