According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week for 30-year fixed-rate loans with conforming loan balances. Rates were also up for 15-year fixed-rate loans and 5/1 ARMs, though jumbo loans and loans backed by the Federal Housing Administration saw declines. It was the sixth consecutive weekly increase for the 30-year fixed rate. Joel Kan, MBA’s vice president and deputy chief economist, says higher rates slowed demand last week. “Both purchase and refinance applications declined, driven by larger drops for conventional applications,” Kan said. “Purchase applications were 21 percent lower than the same week last year, as home buying activity continues to pull back given reduced purchasing power from higher rates and the ongoing lack of available inventory.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
