According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased again last week, moving up across all loan categories. Rates were higher than one week earlier 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. For the most part, the increases were small but still enough to slow mortgage application demand. In fact, refinance activity fell 16 percent from the week before, while demand for loans to buy homes dropped 6 percent. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says it was the third straight week purchase-application demand decreased. “Purchase applications, already constrained by elevated sales prices and tight inventory, have also been impacted by these higher rates and declined for the third straight week,” Kan said. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
