According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes increased last week from one week earlier. The 1 percent improvement was slight but welcome, as it came during a week when rates moved higher. Joel Kan, MBA’s vice president and deputy chief economist, says overall demand is muted. “Purchase applications increased over the week despite the increase in rates, pushed higher by a 2 percent gain in conventional loans,” Kan said. “Given how high rates are right now, there continues to be minimal refinance activity and a reduced incentive for homeowners to sell and buy a new home at a higher rate.” Overall, demand for mortgage applications was down 0.8 percent week-over-week. Rates, on the other hand, 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, 15-year fixed-rate loans, and 5/1 ARMs. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
