According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were down last week for 30-year fixed-rate mortgages with both conforming and jumbo balances. Loans backed by the Federal Housing Administration and 15-year fixed-rate loans were both unchanged from the week before. But despite rates still hovering near record lows, mortgage demand slowed from the week before. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says home buyer demand is still higher than last year, but low inventory is starting to take its toll. “The purchase market continued its recent slump, with the index decreasing for the sixth time in seven weeks to its lowest level since May 2020,” Kan said. “Home buyer demand is still strong overall, and activity was up 16.5 percent from a year ago. However, inadequate housing supply is putting upward pressure on home prices and is impacting affordability – especially for first-time buyers and lower-income buyers.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
