According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly down last week. Rates declined from the previous week for 30-year fixed-rate loans with both conforming and jumbo balances. They also fell for 15-year fixed-rate loans, though FHA loans and 5/1 ARMs saw increases from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says rates are now at a three month low. “Mortgage rates were mostly lower last week, with the 30-year fixed rate declining slightly to … the lowest level in more than three months,” Kan said. As a result, demand for loans to buy homes increased, with FHA and VA loans seeing gains of more than 2 percent. Purchase activity remains lower than last year, though, with demand from buyers now 13 percent below the same week one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
