According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates for 30-year fixed-rate loans with conforming loan balances saw a slight decline last week from the week before. Rates also fell for 15-year fixed-rate loans, while FHA loans were unchanged and jumbo loans and 5/1 ARMs saw small increases. Steady rates were enough to boost interest in buying a home, though, as demand for mortgage applications spiked 9.7 percent. Mike Fratantoni, MBA’s senior vice president and chief economist, says first-time home buyers were a big part of the increase. “Mortgage applications were up considerably relative to the prior week, which included the President’s Day holiday,” Fratantoni said. “Of note, purchase volume – particularly for FHA loans – was up strongly, again showing how sensitive the first-time home buyer segment is to relatively small changes in the direction of rates.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
