Average Mortgage Rates Move Higher

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week. Rates increased from the week before across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 5/1 ARMs, and 15-year fixed-rate loans. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says while rising rates have made buyers more hesitant, they still have options. “Purchase activity was 29 percent lower than a year ago, with higher rates and economic uncertainty weighing on buyers’ decisions,” Kan said. “With the recent jump in rates, the ARM share reached 10 percent of applications and almost 20 percent of dollar volume. ARM loans remain a viable option for qualified borrowers in this rising rate environment.” Despite higher rates, the purchase index was relatively flat week-over-week. In fact, demand for loans to buy homes was down just 0.4 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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