According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell to a new low for the year last week, with drops seen across all loan categories. Rates declined 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. With rates at their lowest level since last November, home buyers kicked into gear. In fact, the MBA’s purchase index – which measures the number of potential buyers requesting mortgage applications – rose 7.1 percent and is now 6 percent above where it was at the same time last year. Joel Kan, an MBA economist, told CNBC purchase application demand was at its highest level in 7 years. “Purchase application volume increased to its highest level since May 2010,” Kan said. “Refinance activity bumped up as well in response to moderating rates, but remained generally subdued.” The refinance index moved up just 3 percent, despite typically being more sensitive to mortgage rate fluctuations. Conducted since 1990, the MBA’s weekly survey covers 75 percent of all retail residential mortgage applications. More here.
