According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved up last week from the week before. Rates were up 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 increases pushed rates to their highest level since July and led to an almost 10 percent drop in refinance activity. Purchase applications also fell, sliding 2 percent week over week. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says the average loan balance is increasing. “Government purchase applications were up over 1 percent, but that was still not enough to bring down the average loan balance of $410,000,” Kan said. “With home-price appreciation and sales prices remaining very elevated, applications for higher balance, conventional loans still dominate the mix of activity.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
