According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. It was the first decline following three consecutive weeks of increases. Rates were down for 30-year fixed-rate loans with both conforming and jumbo balances, 15-year fixed-rate loans, and 5/1 ARMs. Loans backed by the Federal Housing Administration were up slightly from the week before. But despite more favorable rates, demand for mortgage applications still fell last week. Both refinance and purchase activity were down from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says home buyers have been sensitive to market trends so far this year. “Home purchase activity has been very sensitive to rates and local market trends, including the low supply of existing-home inventory,” Kan said. “However, newly constructed homes account for a growing share of inventory, giving more options for prospective buyers.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
