According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased again last week. Rates were up 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 loans. With rates continuing to climb, refinance activity has slowed. Last week, it dropped another 9 percent and is now 54 percent lower than last year at the same time. Purchase activity, on the other hand, only fell 1 percent. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says government loans saw the biggest week-over-week decline. “Purchase applications saw a modest decline over the week, with government purchase applications accounting for most of the decrease,” Kan said. “Prospective buyers still face elevated sales prices in addition to higher mortgage rates. The heavier mix of conventional application again contributed to another record average loan size at $453,000.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.
