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, 15-year fixed-rate loans, and 5/1 ARMs. The improvement led to boosted mortgage demand, with both refinance and purchase activity up from the previous week. Joel Kan, MBA’s vice president and deputy chief economist, says borrowers took advantage of declining rates. “Borrowers sought to take advantage of these lower rates, as both purchase and refinance applications increased over the week,” Kan said. “Purchase activity continued to lead 2024’s pace, as increasing for-sale inventory of homes has been supporting home buying, but on the other hand weakness in the economic environment has deterred some prospective home buyers.” Demand for loans to buy homes is now 18 percent higher than it was at the same time one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
