According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly flat last week, with little change seen from one week earlier. Rates were unchanged for 30-year fixed-rate loans with conforming balances. Jumbo loans, those backed by the Federal Housing Administration, and 15-year fixed-rate loans all saw minor increases. Despite steady rates, demand for mortgage applications fell 1.8 percent from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says purchase demand was driven down by a drop in FHA loan activity. “The 2.5 percent decline in purchase activity, partly driven by a 10 percent decrease in FHA applications, pushed the purchase index to its lowest level in over a month,” Kan said. “The decrease in FHA purchase applications contributed to an increase in the overall average purchase loan size to $432,700, its highest level since the end of this May.” The MBA’s weekly survey has been conducted since 1990 and cover 75 percent of all retail residential mortgage applications. (source)
