According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates were mostly flat last week from one week earlier. Rates saw little movement for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. But despite steady rates, demand for loans was down from the week before, with refinance activity 1 percent lower week-over-week and purchase demand down 6 percent. Joel Kan, MBA’s vice president and deputy chief economist, says uncertainty is to blame. “There is still plenty of uncertainty surrounding the economy and job market, which is weighing on prospective home buyers’ decisions,” Kan said. “The 30-year fixed rate was little changed … but high enough that there was not much interest in refinancing. Purchase applications decreased by almost 6 percent, as applications for conventional, FHA, and VA purchase loans fell, despite slowing home-price growth and increasing levels of for-sale inventory in many regions.” (source)
