According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates moved higher last week from one week earlier. Increases were seen for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says the increases slowed demand, though home buyers remained active. “Buyers remained active in the purchase market, helped by gradually improving inventory conditions and a more positive outlook on the economy and job market,” Kan said. “Refinance applications declined last week, largely driven by VA refinances that were down 17 percent after two weeks of gains.” Overall, demand for mortgage applications was down 0.7 percent week-over-week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
