According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week, remaining near recent lows despite a slight increase across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, 15-year fixed-rate loans, and 5/1 ARMs. Mike Fratantoni, MBA’s senior vice president and chief economist, says rates moved higher but so has purchase demand. “Mortgage rates were up modestly, with the 30-year mortgage rate increasing slightly … With this move, refinance application volume declined on the week but remains almost three-times as high as last year’s pace” Fratantoni said. “The news for the week was that more home buyers appear to be entering the market. Purchase application activity was up for the week and increased more than 9 percent compared to last year at this time.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
