According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell to the lowest level since mid-December last week. Rates were down 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, 15-year fixed-rate loans, and 5/1 ARMs. The drop, however, failed to spur demand for mortgage applications. “Treasury yields moved lower on softer consumer spending data as consumers are feeling somewhat less upbeat about the economy and job market. This pushed mortgage rates lower with the 30-year fixed-rate decreasing to … the lowest rate since mid-December,” Joel Kan, MBA’s vice president and deputy chief economist, said. “Applications were about one percent lower for the week, which included the President’s Day holiday, as purchase applications stayed flat from a week ago while refinance applications saw a small decline.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
