According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively unchanged last week after hitting the lowest level since February the week before. Rates were flat week-over-week, with little movement 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says flat rates weren’t enough to push demand higher. “Last week, VA refi application volume dropped sharply, which drove the aggregate result,” Fratantoni said. “Borrowers may be waiting for signs that mortgage rates will drift lower as the Federal Reserve begins to cut short-term rates.” Demand for loans to buy homes was down 2 percent from one week earlier and is now 14 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)
