According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from one week earlier. Rates 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 increase was due to stronger-than-expected economic news, including the September jobs report. Mike Fratantoni, MBA’s senior vice president and chief economist, says buying conditions are still favorable. “As we have highlighted before, the decision to buy a home is impacted by many factors, not just the level of mortgage rates,” Fratantoni said. “The largest constraint for many prospective home buyers over the past year had been the lack of inventory. Now, there are more homes available in many markets across the country, and with mortgage rates still low compared to recent history, at least some potential home buyers are moving ahead.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
