Average Mortgage Rate Moves Higher

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week from one week earlier. Increases were seen across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Mike Fratantoni, MBA’s senior vice president and chief economist, says the increases led to a decline in mortgage application demand. “Mortgage applications dropped as a result with a larger decline in refinance applications,” Fratantoni said. “Potential home buyers are quite sensitive to these rate changes, as affordability is strained with both higher rates and higher home values in this supply-constrained market.” The rate increase was largely due to news that inflation picked up in January. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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