According to the Mortgage Bankers Association’s Weekly Applications Survey, the number of Americans requesting loans to buy homes last week was 5 percent higher than the same week one year ago – indicating that there is a high level of buyer demand around the country. But though buyers are active in the market, they are also keeping a close eye on affordability. And last week, mortgage rates were also up. In fact, rates rose across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. The increase was driven by confidence in the overall economy. “Market sentiments about strong domestic growth and higher inflation in the U.S. pushed the 10-year Treasury to the 3 percent mark last week, the first time since 2014 that yields have hit that level,” MBA economist, Joel Kan, told CNBC. In other words, continued economic optimism is responsible for increasing rates. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.
