According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates declined 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 improvement helped push demand for mortgage applications higher, rising 0.9 percent from the week before. Mike Fratantoni, MBA’s senior vice president and chief economist, says rates are now lower than they’ve been since the end of March. “Mortgage rates dropped last week following the latest inflation data and the FOMC meeting, with the 30-year conforming rate dropping to … its lowest level since the end of March,” Fratantoni said. “Purchase applications increased a small amount for the week, led by applications for conventional loans.” Despite increasing demand, purchase volume remains 10 percent lower than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
