According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates for 30-year fixed-rate loans with both conforming and jumbo balances fell last week from the week before. It was the third consecutive weekly decline. Rates were also down for 15-year fixed-rate loans, though FHA loans and 5/1 ARMs both saw slight increases. Joel Kan, MBA’s vice president and deputy chief economist, says falling rates helped boost home buyer demand. “Application activity increased as mortgage rates declined for the third straight week. The 30-year fixed rate declined … to the lowest level in over a month,” Kan said. “While the 30-year fixed rate remained 1.65 percentage points higher than a year ago, home buyers responded, leading to a fourth straight increase in purchase applications. Home-price growth has slowed markedly in many parts of the county, which has helped improve buyers’ purchasing power.” Last week, overall demand for mortgage applications was 2.9 percent higher than the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
