According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates moved higher last week. Rates were up for 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Mike Fratantoni, MBA’s senior vice president and chief economist, says he expects rates to trend higher throughout 2022. “MBA’s new March forecast expects mortgage rates to continue to trend higher through the course of 2022,” Fratantoni said. “Purchase application volume was down slightly for the week, with a larger drop in FHA and VA purchase volume, and a small decline in conventional purchase loans. First-time home buyers, who rely on these government programs, are increasingly challenged by both the rapid increase in home prices and higher mortgage rates.” Overall, demand for mortgage applications was down 8.1 percent from the week before. Most of that decline, however, was due to a drop in refinance activity, which is typically more sensitive to rate fluctuations. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
