According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes moved higher last week. In fact, the MBA’s seasonally adjusted Purchase Index was up 2 percent from the week before. The gains came despite rising mortgage rates, which were up across all loan categories including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the FHA, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says economic data continues to push rates higher. “Incoming economic data continues to send mixed signals about the economy, with the overall impact leaving Treasury yields higher last week as markets expect that the Federal Reserve will need to hold rates higher for longer to slow inflation,” Kan said. Still, improving purchase demand is encouraging, especially as it remains 26 percent lower than at the same time last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
