According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates remained at all-time survey lows last week, with rates virtually unchanged for 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The MBA’s survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. But despite historically low mortgage rates, demand continues to be disrupted by coronavirus mitigation efforts. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says some buyers and sellers have taken a wait-and-see approach. “The pandemic-related economic stoppage has caused some buyers and sellers to delay their decisions until there are signs of a turnaround,” Kan said. “This has resulted in reduced buyer traffic, less inventory, and March existing-home sales falling to their slowest annual pace in nearly a year.” Still, the refinance index remains 225 percent higher than last year at the same time and, while demand for loans to buy homes has fallen from last year, it did increase 2 percent last week from the previous week.
