According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week after several weeks of increases. Rates decreased 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. Joel Kan, MBA’s vice president and deputy chief economist, says rates may have fallen last week but it wasn’t enough to boost mortgage demand. “Overall applications were more than 30 percent lower than a year ago, as borrowers continue to grapple with the higher rate environment,” Kan said. “Purchase activity is constrained by reduced purchasing power from higher rates and the ongoing lack of for-sale inventory in the market, while there continues to be very little rate incentive for refinance borrowers.” Kan says demand for FHA loans performed better than other categories, an indication that there’s a growing share of first-time buyers in the market. (source)
