According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. Despite this, however, demand for mortgage applications was down 4.1 percent from the week before. Michael Fratantoni, MBA’s chief economist, told CNBC the drop could be evidence that first-time buyers are having trouble finding homes this spring. “The survey saw relative weakness in the growth of government application volume, suggesting that many potential first-time buyers remain on the sidelines due to the lack of entry-level homes on the market,” Fratantoni said. A lack of affordable inventory in some markets has been credited with holding back home sales this spring, especially among younger home buyers. Overall, though, demand for loans to buy homes is still higher than at the same time last year, up 9 percent as of last week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.
