According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell across all loan categories 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, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at the lowest level since spring. “Mortgage rates declined last week, with the 30-year fixed rate decreasing to its lowest level since April …,” Kan said. “However, that was not enough to spark more application activity.” The MBA’s Market Composite Index – which measures both refinance and purchase activity – was down 1.2 percent, with a 3 percent drop in demand for loans to buy homes. Purchase activity had risen the previous four weeks. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. (source)
