According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates saw a significant decline last week from one week earlier. Rates were down 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 cooling inflation helped lower rates. “Mortgage rates declined last week, as markets responded positively to incoming data showing that U.S. inflation continues to cool,” Kan said. Lower rates led to a 7 percent bump in refinance activity, though demand for loans to buy homes still fell 1 percent despite the improvement. Kan says purchase activity is being held back by low housing supply, which has been an issue for the housing market since before the pandemic. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
