According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased again last week. Rates were up from one week earlier 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. With rates continuing to climb, mortgage application demand has fallen, particularly refinance demand. In fact, the MBA’s refinance index fell 8 percent last week from the week before. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says demand for loans to buy homes has also been volatile in recent weeks. “In a housing market facing affordability challenges and low inventory, higher rates are causing a pullback or delay in home purchase demand …” Kan said. “ Home purchase activity has been volatile in recent weeks and has yet to see the typical pick up for this time of the year.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
