According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. The decline follows four consecutive weeks of increases. Despite lower rates, however, mortgage application demand fell from the previous week. In fact, the Refinance Index was down 5 percent and the Purchase Index – which is a good indicator of future home sales – was down 1 percent, though it remains 24 percent higher than at the same time last year. Michael Fratantoni, MBA’s chief economist, told CNBC demand for higher priced homes is still outpacing applications for more affordable homes. “Average purchase loan size climbed to a new survey high last week, as the higher end of the market continues to grow more quickly than the entry level,” Fratantoni said. The MBA’s weekly survey covers 75 percent of all retail residential mortgage applications and has been conducted since 1990. More here.
