According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates moved lower last week from the week before. 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 rates have fallen and it’s motivating buyers. “Mortgage rates fell to their lowest level in over a month last week …,” Kan said. “The recent strength in purchase activity continues, supported by lower rates and higher inventory levels, which are giving prospective buyers more options compared to earlier in the year.” As a result, the MBA’s Purchase Index increased for the fourth straight week last week, moving 6 percent higher. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
