According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased again last week, moving higher for 30-year fixed-rate loans with both conforming and jumbo balances. Rates for 15-year fixed-rate loans also increased, while the average rate for loans backed by the Federal Housing Administration fell from the week before. With rates rising, demand for mortgage loan applications decreased 6.3 percent week over week. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says rate increases aren’t wholly to blame for the decline in demand. “Purchase activity declined and was 12 percent lower than a year ago, within the annual comparison range that it has been over the past six weeks,” Kan said. “Insufficient housing supply and elevated home-price growth continue to limit options for would-be buyers.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.
