According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates fell 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. It was the second consecutive week rates have declined. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says rates have been dropping but remain higher than last year. “Mortgage rates decreased for the second week in a row, as growing concerns over an economic slowdown and increased recessionary risks kept Treasury yields lower,” Kan said. “Rates are still significantly higher than they were a year ago, which is why applications for home purchases and refinances remain depressed.” Last week, applications fell 5.4 percent, with an 8 percent drop in refinance activity. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
