Average mortgage rates moved higher last week, according to new data from the Mortgage Bankers Association. Their Weekly Applications Survey found rates up 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 loans. Mortgage rates are now at their highest point since July. Joel Kan, an MBA economist, told CNBC the increase was due to positive economic news. “Data released last week, on balance suggested continued strong economic growth,” Kan said. “In combination with hawkish comments from some Fed officials, this pushed rates up. The 30-year fixed rate increased 4 basis points to reach its highest level since July.” But though rates did move upward, it’s important to remember that they’re still well below what’s been considered normal historically. Which is likely why last week’s rate increase didn’t cause a big drop in demand for mortgage applications among potential home buyers. In fact, demand was virtually unchanged from the previous week. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.
