According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up 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. But while the rate bump did slow refinance activity, demand for loans to buy homes actually increased from the week before. In fact, purchase application demand was up 1 percent week-over-week. Mike Fratantoni, MBA’s senior vice president and chief economist, says it’s now at a six-week high. “Purchase application volume inched up to its highest level in six weeks, led by a 3 percent increase in FHA purchase applications,” Fratantoni said. “Overall, purchase application volume is up 6 percent compared to last year at this time. Growing inventories of homes on the market and steadier mortgage rates are supporting home buying activity thus far this spring.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
