According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates climbed higher again last week. Rates were up from one week earlier for 30-year fixed rate loans with both conforming and jumbo balances, as well as loans backed by the Federal Housing Administration. On the other hand, the average interest rate for 15-year fixed-rate loans and 5/1 ARMs saw declines. Joel Kan, MBA’s vice president and deputy chief economist, says recent upward pressure on rates has subdued demand for mortgage applications. “Applications decreased for the sixth consecutive week, with purchase activity falling to its lowest level since mid-August and refinance activity declining to the lowest level since May,” Kan said. Still, both the refinance and purchase index show activity is up from where it was last year at the same time. The MBA’s weekly application survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
