According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from the week before. Rates were down across most loan categories, including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says the decline pushed refinance activity to a four-month high. “The 30-year fixed mortgage rate declined … last week, which spurred the strongest week for refinance activity since April,” Kan said. “Borrowers responded favorably, as refinance applications increased 23 percent, driven mostly by conventional and VA applications.” But despite favorable rates, home buyers failed to respond. In fact, purchase demand rose only 1 percent from the previous week, though it remains 17 percent higher than last year at the same time. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
