Mortgage Demand Flat As Rates Increase

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased last week from one week earlier. 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, and 15-year fixed-rate loans. Higher rates didn’t have much effect on mortgage applications demand, however. In fact, applications were down less than 1 percent. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says purchase activity has been slow. “Purchase activity remained weak, but the average loan size increased again, which indicates that home-price growth remains strong, and a greater share of the activity is occurring at the higher end of the market,” Kan said. While rates have been up in recent weeks, Kan says events in Ukraine may have an impact on interest rates in the days ahead. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

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