According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. It was the fourth consecutive weekly decline and brought rates to the lowest level since July. Decreases were seen for 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. Mike Fratantoni, MBA’s senior vice president and chief economist, says economic indicators are bringing rates down. “Mortgage rates dropped last week, as incoming data point to a slowing economy and support a pivot by the Federal Reserve to begin cutting rates next year,” Fratantoni said. With rates trending downward, there’s been a bump in demand for mortgage applications. Last week, demand for refinance and purchase loans rose 7.4 percent from the week before, with a 4 percent increase in demand for loans to buy homes. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
