According to the Mortgage Bankers Association’s Weekly Application Survey, average mortgage rates for 30-year fixed-rate loans with conforming loan balances fell last week – while jumbo loans, FHA loans, 5/1 ARMs, and 15-year fixed-rate loans all saw week-over-week increases. Still, despite mixed rates, demand from home buyers rose, climbing 2 percent from the week before. Joel Kan, MBA’s vice president and deputy chief economist, says buyer demand remains firm, especially among first-time buyers. “Purchase applications increased, driven by a 2 percent gain in conventional purchase applications and a 3 percent increase in FHA purchase activity,” Kan said. “First-time home buyers account for a large share of FHA purchase loans, and this increase is a sign that while buyer interest is there, activity continues to be constrained by low levels of affordable inventory.” Overall, demand for mortgage applications was up 0.5 percent last week from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)
