According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. Rates were down from the week before for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But despite the declines, demand for mortgage applications was relatively flat. In fact, the MBA’s Market Composite Index – which measures both refinance and purchase loan activity – was down 0.6 percent week-over-week. Joel Kan, MBA’s vice president and deputy chief economist, says rates remain elevated. “Mortgage rates moved lower last week, but that did little to ignite overall mortgage application activity,” Kan said. “Elevated mortgage rates continued to weigh down on home buying. Purchase applications were unchanged overall, although FHA purchases did pick up slightly over the week.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
