According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from one week earlier. Rates were up across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Jumbo loans saw a slight decline. Joel Kan, MBA’s vice president and deputy chief economist, says the increases slowed demand for mortgage applications week-over-week. “Mortgage rates edged higher last week … leading to another decline in overall applications,” Kan said. “The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates … are crimping affordability for many potential home buyers.” Overall, mortgage application demand – including purchase and refinance activity – was down 3 percent from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
