According to the Mortgage Bankers Association’s Weekly Applications survey, average mortgage rates were up last week 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. But while rates for most loan categories increased, rates for adjustable rate mortgages saw a significant decline from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says interest in ARMs spiked as a result. “The level of ARM applications increased by 15 percent over the week, bringing the ARM share up to 9.2 percent of all applications, the highest share since November 2022,” Kan said. “The yield curve has become less inverted in recent weeks and ARM pricing has certainly improved.” That improvement helped push overall mortgage application demand higher week-over-week, including a 1 percent increase in demand for loans to buy homes. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
