According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell to their lowest point in two months last week. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The decline helped boost overall mortgage demand, which rose 8.6 percent from one week earlier. Joel Kan, MBA’s associate vice president of economic and industry forecasting, said demand for loans to buy homes looks strong. “The spring housing market also saw a boost from lower rates, with purchase applications – driven by a jump in conventional applications – increasing over 5 percent,” Kan said. “MBA expects the purchase market to remain strong, with the recovering job market and supportive demographics fueling housing demand in the months ahead.” The MBA’s weekly survey has been conducted since 1990 and cover 75 percent of all retail residential mortgage applications.
