According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week after a long stretch of consecutive increases. In fact, rates even fell slightly for 30-year fixed rate loans with conforming loan balances and loans backed by the Federal Housing Administration. With rates calm for the first time in weeks, borrower demand for mortgage applications rose. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says demand for loans to buy homes was up 4 percent week over week. “Purchase applications increased for conventional, FHA, and VA loans and were up 4 percent overall,” Kan said. “This is potentially a good sign for the spring home buying season, which has seen a slow start thus far.” Still, Kan cautions that the market remains challenging, with low inventory, rising prices, and increasing rates pushing monthly mortgage payments higher for spring buyers. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
