According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down 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 drop wasn’t enough to boost demand for mortgage applications, though. Joel Kan, MBA’s vice president and deputy chief economist, says purchase and refinance activity were both down last week. “Both purchase and refinance applications fell … as prospective buyers remain on the sidelines due to low housing inventory and elevated mortgage rates,” Kan said. “The 30-year fixed mortgage rate decreased … but rates remained more than a full percentage point higher than a year ago, despite mixed data on the health of the economy and signs of a cooling job market.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
