According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week for 30-year fixed-rate loans with conforming loan balances and those backed by the Federal Housing Administration. Jumbo loans, 15-year fixed-rate loans, and 5/1 ARMs all saw decreases from one week earlier. Mike Fratantoni, MBA’s senior vice president and chief economist, says inflation is keeping rates elevated. “Inflation remains stubbornly high, and this trend is convincing markets that rates, including mortgage rates, are going to stay higher for longer,” Fratantoni said. “No doubt, this is a headwind for the housing and mortgage markets, with the 30-year fixed mortgage rate increasing to … the highest level since November 2023.” Higher rates led to slower mortgage demand last week, with demand for loans to buy homes down 2 percent from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
