According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up last week from the week before. Increases were seen for 30-year fixed-rate mortgages with conforming loan balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Rates for jumbo loans fell from one week earlier. Mortgage rates have now increased in four of the first six weeks of 2021. But despite rising, rates are still near record lows and buyers are still active. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says purchase demand continues to outpace year-before levels. “Purchase applications cooled the first week of February, but home buyers are still very active,” Kan said. “Purchase activity was 17 percent higher than last year, and the average purchase loan size continued to increase, reaching another survey high of $402,200, as the higher-priced segment of the market continues to perform well.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
