According to the Mortgage Bankers Association’s Weekly Applications survey, average mortgage rates inched higher last week from one week earlier. Rates were up for most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances and 15-year-fixed-rate loans. The increase caused a decline in refinance application demand but failed to dissuade home buyers, who pushed purchase demand 2 percent higher than the week before. Joel Kan, MBA’s vice president and deputy chief economist, says it was the strongest week in a over a month. “Purchase applications had their strongest week in over a month, up 2 percent, and the average loan size increased to its highest level in two months at $433,400,” Kan said. “Prospective buyers appear to be less sensitive to rates at these levels and are more active, bolstered by more inventory and cooling home-price growth in many parts of the country.” Demand for loans to buy homes is now 25 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)
