According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up slightly last week from the week before, with increases seen for 30-year fixed-rate loans with conforming loan balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Jumbo loans were flat from one week earlier. But though rates are now at their highest point since last June, demand for home purchase loans continues to rise. Last week, it was up 2 percent week-over-week pushing it 5 percent higher than last year. At the same time, higher rates have hurt refinance demand, which fell 4 percent from the week before. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says there are a few factors helping drive buyer demand. “The purchase market helped offset the slump in refinances,” Kan said. “Activity was up 5 percent from a year ago, as the recovering job market and demographic factors drive demand, despite ongoing supply and affordability constraints.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.
