According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell for the second straight week last week. Rates were down across most loan categories including 30-year fixed-rate loans with conforming balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. The decline was good news for home buyers, though challenging conditions remain. Joel Kan, MBA’s vice president and deputy chief economist, says buyer demand has been constrained. “Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain home buying activity in many markets,” Kan said. Still, demand for loans to buy homes surged last week, increasing 8 percent from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
