According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week from one week earlier. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Joel Kan, MBA’s vice president and deputy chief economist, says the decline was due to concerns about the banking sector. “Treasury yields declined last week, driven by uncertainty over the health of the banking sector and worries about the broader impact on the economy,” Kan said. “Mortgage rates declined for the second week in a row, with the 30-year fixed rate dropping to .. the lowest level in a month.” The drop led to an increase in demand for mortgage applications, with both refinance and purchase loan activity up 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)
