According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates fell last week. Rates were down from one week earlier 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. But despite the decline, demand for mortgage applications also fell, with both refinance and purchase activity slowing from the week before. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says affordability conditions may be to blame. “Prospective home buyers have been put off by the higher rates and worsening affordability conditions,” Kan said. “Furthermore, general uncertainty about the near-term economic outlook, as well as recent stock market volatility, may be causing some households to delay their home search.” The drop in mortgage applications was the first in three weeks. Conducted since 1990, the MBA’s weekly survey covers 75 percent of all retail residential mortgage applications. (source)
