According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes moved 5 percent higher last week, despite rising mortgage rates. Average rates were up across all loan categories, including 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. It was the second consecutive week mortgage rates rose. Joel Kan, MBA’s vice president and deputy chief economist, says rates have moved higher due to the continuing strength of the economy. “Rates increased for the second consecutive week, driven by incoming data indicating that the economy remains strong and inflation is proving tougher to bring down,” Kan said. “Despite these higher rates, application activity picked up, possibly as some borrowers decided to act in case rates continue to rise.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
