According to the Mortgage Bankers Association’s Weekly Applications Survey, the average mortgage rate for 30-year fixed-rate loans with conforming loan balances fell last week for the first time in more than a month. The decline is encouraging news for prospective borrowers but Joel Kan, MBA’s vice president and deputy chief economist, warns rates are still high. “Mortgage applications declined for the third straight week as mortgage rates remained elevated, with all rates around 30 basis points higher than they were a month ago,” Kan said. “The impact of higher rates continued to be felt across both purchase and refinance markets.” With rates still high, demand for loans to buy homes fell 1 percent from the previous week while refinance activity was down 4 percent. The survey found rates were also down for 5/1 ARMs, though up slightly for jumbo loans, 15-year fixed-rate loans, and FHA loans. Conducted since 1990, the MBA’s weekly survey covers 75 percent of all retail residential mortgage applications. (source)
