According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from one week earlier. Increases were seen across all loan categories, including 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. It was the first time rates increased in four weeks. Joel Kan, MBA’s vice president and deputy chief economist, says borrowers have been sensitive to recent fluctuations. “Borrowers remain sensitive to small increases in rates, impacting the refinance market and keeping purchase applications below last year’s levels,” Kan said. “There continues to be limited levels of existing homes for sale and many buyers are struggling to find listings in their price range that meet their needs.” Last week, though, declining application demand was largely due to a drop in refinance activity. Demand from home buyers was down just 1 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)
