According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week 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 drop brought rates to their lowest point since the first week of 2018. Mike Fratantoni, MBA’s senior vice president and chief economist, said rates are decreasing because of concerns over trade tensions. “Mortgage rates dropped to their lowest level since the first week of 2018, driven by increasing concerns regarding the ongoing trade tensions with China and Mexico,” Fratantoni said. “Some borrowers, particularly those with larger loans, jumped at the opportunity to refinance, bringing the index and average refinance loan size to their highest levels since early April.” Unfortunately, purchase application demand didn’t see a similar bounce. In fact, demand for applications for loans to buy homes fell from one week earlier. Fratantoni suspects the decline was due in part to the Memorial Day holiday. More here.
